
Class, 
Book 






i: 



MAJORITY AND MINORITY 

REPORTS 

or THE 

UNITED STATES RITUMINOUS 
COAL COMMISSION 

TO 

THE PRESIDENT 



FROM 

HENRY M. ROBINSON 

Chairman 
AND 

JOHN p. WHITE and REMBRANDT PEALE 

Clommissiooera 



1920 




WASHINGTON 

GOVEP^-^'* NT PRINTING OFFICB 

1920 



INIAJORITY AND MINORITY 

REPORTS 

OF THE 

UNITED STATES RITUMINOUS 
COAL COMMISSION 

TO 

THE PRESIDENT 



FROM 

HENRY M. ROBINSON 

Chairman 
AND 

JOHN P. WHITE and REMBRANDT PEALE 
Commissioners 



1920 



\^, 




WASHINGTON 

GOVERNMENT PRINTING OFFICE 

1920 









0. of i. 

MAr 29 1920 



THE MAJORITY REPORT 

OF THE 

United States Bituminous Coal Commission 

TO 

THE PRESIDENT 

^ FROM 

HENRY M. ROBINSON. Chairman 
REMBRANDT PEALE,Commissioaer 



United States BiTr^TiNors Coal Commissu)x, 

^Vashington, March 10, 1920, 
Tlie Prksidknt, 

The White House. 

My Dear Mr. President: In transmitting the majority report of 
the Bituminous Coal Commission, may Ave call your attention to 
certain salient points: 

The increase in wages to the miners amounts approximately to 27 
per cent : that is, the 14 per cent average increase granted by the 
Fuel Administrator when the strike was threatened has been elimi- 
nated and a 27 per cent average increase substituted. 

Figured in dollars the increase is approximately $90,000,000 in 
excess of the advance allowed by Dr. Garfield. This means a total 
increase in wage cost of $200,000,000 as compared with the cost on 
October 31, 1919. 

Ph'ery etlbrt was made to ascertain the actual increase in the cost of 
living to the miners. Many different figures and opinions were pre- 
sented. Our award, as the result of careful scrutiny of all the evi- 
dence submitted by the parties in interest and otherwise obtained, 
grants the miners an advance in wages larger than the percentage of 
increase in the cost of living submitted by their representatives. 

Tonnage workers will have received, under this award, an average 
increase in wages since 1913 of 88 per cent, and day men, part of 
whose previous advance was based on existing inequalities in com- 
pensation rather than on increased living costs, will have received an 
average advance of 111 per cent. 

The other main point of the United ^line Workers' contention — 
a reduction in the working hours from eight to six hours a day, and 
five days a week— is not granted, for the reasons we state in the 
report. We are convinced that a curtailment of productive energy 
would react not only against tlie whole population but against the 
miners themselves. 

It is essential that the miners >h;ill have living wages. It it like- 
wi.se essential in tlie j^ublic interest that there shall be no let down 
in production. 

AVe express the opinion that had we shortened the day by one hour, 
it would be equivalent to an additional cost of over $100,000,000. 

We have sought and believe that we have found some of the prin- 
cipal reasons for the weakness in this uncertain and troubled indus- 
try, and we offer a method for remedying the most important of these 
conditions. 

The time has come for the ]>ooplo of the country, of which lal)or 
constitutes a large part, to look beyond temporary wage settlements 
and consider the general welfare, first, of the general public it-elf, 
then, of the employees and emplo^'ers. 

5 



b REPORTS OF BITUMINOUS COAL COMMISSIOl!?'. 

A wage settlement for the moment is not a correct or adequate 
answer to the problem. The coal industry has been on an unsound 
basis for years, because of its seasonal character and the resulting car 
shortages and car-service intermittencies. The heavy movement of 
bituminous coal comes in the fall and winter. Inevitably, with the 
buying and movement limited to one season, there is a great car 
shortage which limits production. When the market drops in the 
spring and summer there are idle men, idle mines, and idle cars. 
From the standpoint of employers and employees, the industry has 
yielded a hazardous return. 

The solution of the problem is to bring about evenness of produc- 
tion and distribution. This can be done by the cooperation of the 
railroads, public utilities, and steel companies as consumers on the 
one side and of the operators, the Interstate Commerce Commission, 
th« banks, and the Federal Eeserve System on the other side. 

We believe that the Federal reserve banks will view favorably the 
eligibility of commercial paper based upon coal purchased and stored 
by the railroads and public utilities in the dull seasons. Some of the 
leading railroads have given assurances of their cooperation. Others 
approached have not. 

If virtually complete cooperation is assured, it will result in time 
in a substantially even production, continuous employment, and even 
distribution throughout the year. The small consumer will then 
not have to compete with the large consumer in the winter^ and will 
not be at the mercy of the practice .of commandeering on the grounds 
of priority. Until this is done, wage costs must of necessity be high, 
but when this is accomplished prices should be more reasonable, em- 
ployment more continuous, and the industry better stabilized. The 
present inexcusable and extravagant waste would then be eliminated. 

The mine workers themselves, we feel sure, recognize that no other 
remedy will be adequate. A shortening of the working da}^ would 
seriously affect production, add additional workers to the industry, 
and increase the present unsettled condition. This decreased produc- 
tion would in turn add still further to the cost of living, hitting the 
workmen in other industries, and continue the folly of such pyramid- 
ing. 

In transmitting this report to you, we wish to say that both the 
mine workers and the operators have given every assistance possible 
in the work of the commission, and we wish to add that Mr. White 
has worked diligently and long on the problems which confronted 
the commission. It is our sincere- regret that Mr. White did not see 
fit to join us and make the findings and awards of the commission 
unanimous. 

Very respectfully, yours, 

Henry M. Kobinson, ChoArman, 
Rembrandt Peai^, C orwnyissione-r. 



MAJORITY REPORT OF THE UNITED STATES BITUMINOUS 
COAL COMMISSION. 



The Prestofnt. 

The White House. 
The undersigned, the majori^v of the commission appointed by 
you December 19, 1919, to investigate and consider questions of 
wages and working conditions that have arisen between the coal 
minei-s and operators, herewith submit the report asked for in your 
letter of appointment. 

ORGANIZATION. 

Your commissioners, Henry M. Robinson, John P. White, and 
Rembrandt Peale, met on Monday, December 29, in Washington; 
elected Henry M. Robinson chairman, and created the following 
executive staff: 

Executive secretary: Herbert N". Shenton. 

Technical advisers : Samuel A. Taylor, E. A. Groldenweiser, Percy 
Tetlow, Charles O'Neill, Ethelbert Stewart. 

Assistant to the chairman : D. M. Reynolds. 

Disbursing officer : E. K. Ellsworth. 

Counsel: Alexander C. King. 

Assistant secretary: R. R. Reeder. jr. 

Recorder: Mrs. Mary Burk East. 

Director of information : K. C. Adams. 

The commission gave due and official notice of its intention to 
begin its hearings, and the fi rst hearino- wa s set for and held on 
Janua ry 12, 192Q^Jti the assembly room of the American Red Cross 
Building Washington, D. C. 

THE AUTHORITY OF THE COMMISSION. 

Your letter appointing the undersigned as members of the com- 
mission, together with the statement of December 6, and the memo- 
randum referred to in the letter, which constitute the authority 
under which the commission operated, are as follows: 

The White House, 
Washinptov, Dernnher J9, 1910. 
My Dear Mb. Robinson : On October 6, 1017, with the official approval nn<l 
sanction of the United States Fuel Administration, an airreement (since 
known as the "Washington wa?ce agreement") was entered into between 
the operators and the union miners and mine worlvers of the so-called 
Central Competitive Bituminous Coal Fields, composed of western Penn- 
sylvania, Ohio, Indiana, and Illinois, which provided for an increase in 

7 



REPORTS OF BITUMINOUS COAL COMMISSION. 

the production of bituminous coal and an increase in wages to tlie miners 
and mine workers from the then existing scale of compensation. The 
agreement contained the following clause : 

" Subject to the next biennial convention of the United Mine Workers 
of America, the mine workers' representatives agree that the present con- 
tract be extended during the continuation of the war and not to exceed 
two years from April 1, 1918." 

Subsequently, on January 19, 1918, this agreement was approved by 
tlie convention of the International Union, United Mine Workers of 
America. 

At the fourth biennial convention of the International Union, United 
Mine Workers of America, held in Cleveland, Ohio, from September 9 to 
September 23. 1919, the so-called scale committee submitted a report recom- 
mending, among other things, that the convention demand a 60 per cent 
increase applicable to all classifications of day labor and to all tonnage, 
yardage, and dead-work rates throughout the Central Competitive Field; 
that all new wage agreements replacing existing agreements should be 
based on a six-hour work day from bank to bank, five days per week ; 
the abolition of all automatic penalty clauses; that all contracts in the 
bituminous field should be declared to expire on November 1, 1939; and 
that in the event a satisfactory wage agreement is not secured for the 
Central Competitive Field before November 1, 1919, to replace the one now 
in effect, the international officers be authorized to and are hereby in- 
structed to call a general strike of all bituminous miners and mine workers 
throughout the United States, the same to become efiiective November 1, 
1919. 

Subsequently conferences were held between representatives of the oper- 
ators and of the miners, at which the miners' demands were submitted 
and declined on the part of the operators. The officers of the International 
Union, United Mine Workers of America then issued so-called strike orders 
to all of their local unions and members, requiring them to cease work in 
the mining of bituminous coal at midnight on Friday, October 31. 

On October 15, 1919, the Secretary of Labor called a conference between 
the operators and miners of the bituminous mines in the central competitive 
field, which conference also resulted in failure to reach an agreement. In 
a letter to Secretary Wilson, which was submitted to the conference, I said : 

" If for any reason the miners and operators fail to come to mutual 
understanding, the interests of the public are of such vital importance in 
connection with the production of coal that it is incumbent upon them to 
refer the matters in dispute to a board of arbitration for determination 
and to continue the operation of the mines pending the decision of the 
board." 

Subsequently, on October 25, 1919, I issued a statement in which I said 
that a strike in the circumstances therein described " is not only unjusti- 
fiable, it is unlawful," and added : 

" I express no opinion on the merits of the controversy. I have already 
suggested a plan by which a settlement may be reached, and I hold myself 
in readiness, at the request of either or both sides, to appoint at once a 
tribunal to investigate all the facts with a view to aiding in the earliest 
possible orderly settlement of the questions at issue between the coal oper- 
ators and the coal miners, to the end that the just rights not only of those 
interests but also of the general public may be fully protected." 

Despite my earnest appeals that the men remain at work, the officers of 
the United Mine Workers of America rejected all the proposals for a peace- 
ful and orderly adjustment and declared that the strike would go on. Ac- 
cordingly, at my direction, the Attorney General filed a bill in equity in the 
United States district court at Indianapolis praying for an injunction to 
restrain the officers of the United Mine Workers of America from doing any 
act in furtherance of the strike. A rest4-ainlng order was issued by the 
court, followed by a writ of temporary injunction on November 8, 1919, in 
which the defendants were commanded to cancel and revoke the strike 
orders theretofore issued. These strike orders were accordingly revoked in 
a form approved by the court, but the men did not return to work in suffi- 
ciently large number to bring about a production of coal anywhere ap- 
proaching normal. 

On December 6, 1919, I issued a statement in which I restated the Gov- 
ernment's position, appealed to the miners to retui'n to work, and renewed 



REPORTS OF BTTU.MIXOUS COAL C0M:MISSI0N. U 

my sujrjjjesiion that upon the j;eneral resnniption of minin.i:: oporatioiis a 
suitable tribunal would be erected for the piu-pose of invest ipitiui;- and 
adjustinj; the matters in controversy between the operators and the miners. 
This statement was submitted to a meetinix of the otlicers of the Interna- 
tional Union, United Mine Workers of America, haviuir authority to take 
action, which meetinjz adopted as its act a memorandum i)rei)ared by the 
Attorney General and approved by me, embodyiujx the su.u-.tiestions con- 
tained in my statement of December G. I am informed also that the 
operator.; have irenerally asrreed to the plan therein outlined. 1 inclosed 
for your infm-mation coi\v of my statement of December 0. liMO, and the 
memorandum just referrt'd to. 

TheiieJias-uaw been a .general resum])tion of operation in all parts of the 
bituminous coal tields sulhcient to warrant the appointment of a connnission 
such as i." referred to iu the memorandum of the Attorney General, and I 
have accor«linj;ly appointed you. >tr. Uembrandt Teale, a mine owner and 
operator in active business; and ^Iv. Jithn P. White, a practical miner, as 
a connnission with the ]>owers and duties as set forth in the mcmoi-andum 
airrced to and adopted by the miners and operators, who conducted all the 
prior ue.iToiiations. If a readjustment of the prices of coal shall be foiuid 
necessary. I shall be pleased to transfer to the connnission. subject to its 
unanimouN action, the powei'S heretofore vested in the Fuel Administrator 
for that purpose. 

I am sure it is not necessary for me to call your attention to the tre- 
mendous importance of the work of this commission or the irreat oppor- 
tunity which it presents for lasting- service to the coal industry and to the 
country. If the facts coverins: all the phases of the coal industry necessary 
to R proper adjustment of the matters submitted to you sluill be investi- 
gates! and reported to the public. I am sure that your report, in addition 
to being accepted as the basis for a new waire agreement for the bituminous 
coal miners, will promote the public welfare and make for a settled condi- 
tion in the industry. Xo settlement can be had in this matter, permanent 
and lasting in its benefits, as affecting eitlier the miners, the coal operators, 
or the general public, unless the tindings of this body are comprehensive in 
their cliaracter and embrace and guard at every point the public interest. 
To this end. I deem it important that your conclusion should be reached 
by unanimous action. Upon your acceptance of this appointment, I shall 
be pleaseil to call an early meeting of the connnission at Washington, so 
that you may promptly lay out plans f<n your work. 
Sincerely, yours. 

Wooijp.ow W 1 1. SOX. 

Mr. Hf.miy ^r. RoRixsoN. Roronia, Ohio. 

(Similar letters to John P. AVhite and Pembrandi Penle.) 

Tlie followiiifr is tlie statement of Doeoniber 0. reforrod to above: 

Deck^iber G, 1910. 

I have watched with deep concern the dcveloinin'nt in the bitmninous 
coal strike and am convinced that there is nuich confusion in the mindsj of 
the people generally and possibly of both parties to this unfortunate con- 
troversy as to the attitude and purposes of the Government in its hand- 
ling of the situation. 

The mine owners offered a wage increase of 20 jier cent c(»ndilioned. 
however, upon the price of coal being raised to an amonnt sulhcient to cover 
this propo.se<l increase of wages, which would have added at least .$ir)0,- 
«K¥»,rM>0 to the annual coal bill of the ]>eople. The P'uel Adnnnistrator in 
the light of present information has taken the position, and I think with 
entire justification, that the public is now paying as liigh prices for coal 
as it onght to be required to pay and that any wage increase made at this 
time onirht to come out (tf the profits of the coal operators. 

In reaching this conclusion, the Fuel Administrator expre.ssod the per- 
.sonal opinion that a 14 per cent increase in all mine wages is reasonable 
because? it would e(pialize the miners' wages on the average with the cost 
of living, but he made it perfectly clear that the operators and miners are 
at liberty to agree upon a larger increase, provided the operators will pay 
it out of llieir profits so that the price of coal would remain the same. 



10 REPOETS OF BITUMIiil^OUS COAL COMMISSIOlIJr. 

Tlie Secretary of Labor, in an effort at conciliation bet\Yeen the parties, 
expressed his personal opinion in faror of a lai^er increase. His efforts 
at conciliation failed, however, because the coal operators were unx'silling 
to pay the scale he proposed unless the GoTernment ^^onld advance the 
price of coal to the public and this the Government was unwilling to do. 

The Fuel Administrator has also suggested that a tribunal be created 

in which the miners and operators would be equally represented to con- 

^ sider future questions of wages and working conditions, as well as profits 

of operators and proper prices for coal. I shall, of course, be glad to 

aid in the formation of such a tribunal. 

I understajid. the operators have generally agreed to absorb an increase 
of 14 per cent in wages, so that the public would pay not to exceed the- 
present price fixed by the Fuel Administrator, and thus a way is opened 
to secure the coal of which the people stand in need, if the miners will 
resume w^ork on these terms pending a thorough investigation by an im- 
partial commission, which may readjust both wages and prices. 

By the acceptance of such a plan, the miners are assured immediate 
steady employment at a substantial increase in wages and . are further 
assured prompt investigation and action upon questions which are not 
now settled to their satisfaction. I must believe that with a clear under- 
standing of these points they will promptly return to work. If, never- 
theless, they persist in remaining on strike, they will put themselves 
in an attitude of striking in order to force the Government to increase 
the price of coal to the public, so as to give a still further increase 
in wages at this time rather than allow the question of a further 
increase in wages to be dealt with in an orderly manner by a fairly con- 
stituted tribunal representing all parties in interest. 

No group of our people can justify such a position, and th€ miners owe 
it to themselves, their families, their fellow workmen in other industries, 
and to their country to return to worlc. 

Immediately upon a general resumption of mining I shall be glad to aid 
in the prompt formation of such a tribunal as I have indicated to make 
further inquiries into this whole matter, and to review not only the reason- 
ableness of the wages at ^^dlich the miners start to work but also the rea- 
sonableness of the Government prices for coal. vSuch a tribunal should' 
within 60 days make its report, which could be used as a basis for nego- 
tiation of a wage agreement. I must make it clear, however, that the 
Government can not give its aid to any such further investigation until 
there is a general resumption of work. 

I ask every individual miner to give his personal thought to what I say. 
I hope he understands fully that he will be hurting his own interest and 
the interest of his family and will be throwing countless other laboring 
men out of employment if he shall continue the present strike, and further, 
that he will create an unnecessary and unfortunate prejudice against 
organized labor which will be injurious to the best interests of working- 
men everywhere. 

WooDEow Wilson. 

The memorandum referred to above is as follows : 

In accordance with the request of the President, as contained in his 
statFmeiit Of December 6, the miners will immediately return to work with 
the 14 per cent increase in wages, which is already in effect. Immediately 
upon a general resumption of operations, which shall be in all districts, 
except as to wages upon the basis which obtained on October 31, 1919, the 
President will appoint a commission of three persons, one of whom shall 
be a mine owner or operator in active business, which commission will con- 
sider further questions of wages and working conditions as well as profits 
of operators and proper prices for coal, readjusting both wages and prices 
if it shall so decide, including differentials and internal conditions within 
and betw-een districts. Its report will be made within 60 days, if possible, 
and will be accepted as the basis of a new wage agreement, the effective 
date and duration of which shall also be determined by the commission. 

In addition you issued the following Executive order, in order to 
permit this commission to obtain necessary aid and information 
from the various governmental departments: 



REPORTS OF BITUMINOUS COAL COMMISSION. 11 

In order that the coiuniission consistiiis: of Heniy M. Robinson, Rem- 
brandt Peale, nnd John P. White, appointed by me on December 10, 1010, 
to consider questions of wuijes, workinir conditions, and <^ther matters in 
the bituminous ci.al lieUls. may avail itst^lf of data and information in the 
possession of the several executive departments, independent (Jovernment 
establishments, boards, commissions, or other aijencies of the Government, 
it is herel)y ordered that such data and information a^ may be nsked for 
by the connnissiou shall be furnished. 

woudkuw w ii son. 

Thk White Hotse. 

January, 8. l!>2'i. 

PROCEDURE. 

Tlio roniniission determined that it shouhi first hear the stateinent<5 
and demands of the mine workei's in the central competitive field, 
consisting of the States of Illinois, Indiana, Ohio, and western 
Pennsylvania, and then the statements and demands of the opera- 
tors in the same field, as this field has for many years been used as 
the basis for arriving ^t wage scales and agreements in other dis- 
tricts. Subsequent to the hearings of the central competitive field 
the commission heard the case^ of the miners and operators in the 
outlying districts. 

Following this the commission determined to hear the statements 
of consumers generally, particularly those whose problems might 
best show the actual conditions existing throughout the country, 
especially in regard to stability and distribution of the coal supply. 

THE POSITION OF THE MINERS. 

Acting President John L. Lewis of the United Mine Workers of 
America, presented the principal demands of the mine workers, as 
follows : 

1. That there be a (iQ-4}£r_£eiit increase upon all classifications 
by day labor, tonnage, yardage, and day work in the central 
competitive field. That, of course, carries with it that the basis 
of imderstanding reached in the central competitive field on the 
part of the mine workers would be satisfactory in all outlying 
coal-producing districts. 

•2. That a six-hour da v . five days per week, be established. 

3. That the day labor be })aid time and a half for overtime and 
double time for Sundays and holidays. 

4. That pay days shall be upon a weekly basis. 

5. That the double shift o*f work on coal for commercial ton- 
nage be abolished. 

6. That the automatic penalty clause be abolished. 

7. That the internal differences not covered by interstate 
joint agreement shall be referred back to the respective districts 
for adjustment. 

8. That any contract negotiated be effective from and after 
November 1, 1919, to rim for a period of two years from that 
date. 



12 



EEPORTS OF BITUMINOUS COAL COMMISSION. 



The position of the miners was presented by the following dele- 
gates : 

CENTRAL COMPETITIVE FIELD. 

National representatives appearing in conjunction witli scale committee of 
the central competitive field: 

Lewis, John L.^ Green, William.* Bittner, Van. A.* 

Western Pennsylvania, District No. 5. 



Murray, Philip.* 
Gibbons, Robert R. 
Hargest, William. 
O'Leary, John. 
Ragan, Patrick. 
McAA^ee, John. 



Moore, John.* 
Hall, Lee. 
Savage, G. W.* 



Stewart, Edward.* 
Raney, W. H. 
Mitch, William.* 



Farrington, Frank.* 
Fishwick, Harry. 
William, Ben. 



Stevenson, William.* 



Lewis, J. G.* 
Morris, J. M. 
Gay, John.* 
Ballantyne, Samuel. 
Agnossen, J. P. 
Watkins, D. H. 



Leithold, Frank. 
Kavanaugh, William. 
Flood, James. 
Hughes, Thomas. 
Gulick, Fred. 
Haynes, William. 

Ohio, District No. 6. 

Robinnet, William, 
Cecil, George. 
Price, Thomas J. 

Indiana, District No. 11. 

Hessler, John. 
Fettinger, Charles. 
Hall, U. G. 

Illinois, District No. 12. 

Nesbit, Walter. 
Sneed, William J.* 
Yearsley, Joseph. 



Teare, William. 
Vogel, John. 
Crawley, Harry. 
Fasson, Andy. 
Hagan, Michael. 
Jordan, Clyde. 



Saxton, John. 
Roy, William. 
Thompson, Will 0. 



Sutch, Harry. 
Lentz, Harry. 



Grace, Charles. 
McAllister, Robert T. 



MICHIGAN, DISTRICT NO. 24. 
Muir, WilHam W.* 
IOWA, DISTRICT NO. 13. 



McCuUy, Thomas. 
Elsberry, W. T. 
Romesburg, F. T. 
Simmons, J. R." 
Gibbons, W. H. 
Morgan, E. J. 



Yancey, D. G. 
Crook, Neal. 
White, Tom. 
Jones, C. E. 



SOUTHWESTERN INTERSTATE FIELD. 
Oklahoma, Arkansas, and Texas, District No. 21. 
Wilkinson, John.* Doyle, James. Dahimple, W. M. 



Speaker at the bearings. 



EEPOKTS OF BITUMINOUS COAL COMMISSION. 13 

^[issoiiu, District No. 2o. 
Frainpton, D. A.* H«?pplo, George. 

Kansas, District No. 14. 
Petk, G. L.* Cunniughain, Tlioiiias. 

MONTANA, DISTRICT NO. 27. 
Dreiiiian, Henry.* Ely, Stephen. 

WASHINGTON, DISTRICT NO. 10. 
llarlin, Robert H.* Farrimond, Ben. Caddy, Samuel. 

WYOMING, DISTRICT NO. 22. 

Ciihill, Martin. McLeod, Hugli. IMoigan. James D.* 

Young, George. 

COLORADO, DISTRICT NO. lo. 

President Lewis* presented report prepared by O. F. Nigro, president Dis- 
trict No. 15. 

WESTERN KENTUCKY, DISTRICT NO. 23. 

Duncan, W. D.* Jackson, Lounie.* 

ALABA:\IA, DISTRICT NO. 20. 

Kennanier, J. R. Harrison, W. L.* 

TENNESSEE AND EASTERN KENTUCKY, DISTRICT NO. 19. 

Keller. S. A.* Dees, George H. Goius, J. L. 

Brooks, J. W. Henderson, J. J. Rogers, George. 

Walters, Frank. Branam, George. Cope, R. B. 

WEST VIRGINIA. KANAWHA FIELD, DISTRICT NO. 17. 

KetMiey. Frank C Peters, A. T. Scott, Brant. 

Mooney, Fred. 

CENTRAL PENNSYLVANIA, DISTRICT NO. 2. 

r.roi»liy. Jitlin.^ Feely, James. .Tames, H. ]M. 

.Marks, James.* Swartzenthruver, Ed.* Nunemaker, Sam. 

Gilbert. Richard. Jones, A. W. Panvera. Jo"<eph. 

Duffy. P. J. Guyer, Adolph. Iludzinski, Stanley. 

W«-l.sh, William. Ghovvent, John. Chamber, Sam. 

Crago, Harry. Carletti, Herman. McMullen. Alex. 

Bunzer, John. Ferrara, Peter. Kane, William. 

MARYLAND, DISTRICT NO. 10. 

Drum, Francis.* 

* Spfaker at Ibe lieariiigit. 



14 KEPORTS OF BITUMIl^rOUS COAL COMMISSIOJf. 

THE POSITION OF THE OPERATOES. 

The operators primaril}^ adopted a defensive attitude, presenting^ 
their counterclaims to the miners' demands as incidental to their 
defense, but these counterclaims may be summarized as follows as to 
the central competitive field. The operators asked : 

1. That the present system of collecting dues and initiation 
fees for the mine workers and enforcing the payments thereof 
by deductions from their earnings through the officers of the 
operators be abolished. 

2. That the commission fix an equitable method for dealing 
with house rent charged mine workers and the price charged 
the miners for domestic coal. 

3. That the commission recommend to the Congress of the 
United States the enactment of legislation requiring associa- 
tions of employees, which make contracts of employment with 
employers, to take such action as will make them legally respon- 
sible for the fulfillment of the contracts so entered into. 

4. That the national officers of the United Mine Workers of 
America and the national organization being parties to the mak- 
ing of the contract be required to assume responsibility for 
enforcing the terms of such contracts in the various districts, 
notwithstanding the present limitations in the constitution of 
the United Mine Workers of America. 

5. That the contract shall provide that time clocks or time 
devices may be installed at mines and that the miners and inside 
da}^ men be required to register when they enter or leave the 
mines and that the outside day force be required to register 
when the}^ arrive at or leave the mines. All men refusing to 
comply with such requirements to be subject to discharge. 

6. That the commission in its award provide for the introduc- 
tion of devices or machinery which may serve to reduce the cost 
of coal and consequently the cost to the public for which there 
is no scale of wages in the then existing contract. 

7. That whatever contract the commission works out or recom- 
mends should expire on the 31st of March, 1922 ; that contracts 
should expire in the spring and should stand for a two-year 
period. 

The position of the operators was presented by the following 
delep'ates * 

CENTRAL COMPETITIVE FIELD. 

Crews, Ralph,* counsel for operators. 

The following men presented exhibits for the Central Competitive Field : 

Honnold, Dr. F. C* Lesher, C. E.* Muller, Jean Paul* 

Pennsylvania. 

Armstrong, J. M. Guthrie, T. W.* Robison, W. L. 

Donaldson, J. A. Henderson, W. M. Rose, Don* 

Field, W. K. Mahoney, John Pollock, A. R. 

Fear, Thomas. Calverley, W. R. 

» Speaker at the hearings. 



REPORTS OF BITUMIXOUS COAL COMMISSION, 
Ohio. 



15 



Aii?:iis?tiis, A. A. 
Gallnuher. Mirhel 
Kohbins, S. H. 



Haskins, W. H. 
Jones, GeorfiTP M. 
Weitzel. C. A. 



Manrer, C. E/ 
Pursglove, Joseph 



Indiana. 



FrtH'man. W. J. 
G(.uld, M. L. 
Peuna, P. H.* 



Ingle, David 
Kolsem. J. C. 
Shirkie, Hugh 



Logsden, E. D. 
Ogle, Alfred M. 



Adams. N. C. 
Krewster, T. T.* 
Sear Is, E. C. 



Illinois. 

Buchanan. D. W. 
Harrington, Goo. B. 
Spencer. William J. 



Miller. Rice 
Perry, Herman O. 



Diamond, William* 
Coryell, John A. 



MICHIGAN. 
Randall, R. M. 



Coryell, Charles 



Cushing. D. F.* 
Norwood, J. 
Hunter, Robert 



IOWA. 



Pfahler. F. S. 
Heap3. Geo. 



Ryan, J. B.* 
McClure, Sam 



SOUTHWESTERN INTERSTATE FIELD. 
Oklahoma, Abkansas, Missouri, Kansas, and Tkkas. 



Wilson, J. B.' 
Malloy, P. W. 
Cameron, James 



Aston, W. H.* 
Gower, Gomer* 
Taylor, H. N/ 



Johnson, W. L. A.* 
Hawkins, W. P. 
Clemens, Ira^ 



Whyte, F. W. C* 
Kopka, H. S. 

Buckingham, D. C* 
Moore, N. D.* 
Ryzek, John. 



Addison, Herbert* 
Brown, Ge«»rge A, 



MONTANA. 
Brophy. J. F.' 

WASHINGTON. 

Johnson. B. H. 
Foster, C. A. 
Needing. F. 

WYOMING. 

Quealy. P. J.* 
Pape, D. II. 

COLORADO. 

Bartiett. G W.* 



Need ban, James B. 



Anderson, C. C. 
Grombs, J. B. 
Barnum, W. M.* 



Whyte, F. \V. C. 



Speaker at the hearings. 



16 



EEPOP.TS OF BITUMi:XOUS COAL COMMISSIOIT. 



Norman, J. V/ 
Brown, R. L. 



Berry, P. D. 



Morton, Qiiin. 
Duma, B. C. 



Puckett, W. M. 



Webb, Louis M. 



WESTERN KENTUCKY. 

Western Kentucky Coal Operatoes' Association. 

Rash, F. D. 



Tucker, H. L. 
Duncan, W. G. 

Operators' Association. 

Lanier, S. S. Ceil, H. H. 

WEST VIRGINIA AND KANAWHA FIELD. 

Kanawha Coal OpePvAtors' Association. 

Robinson, Carl. Stayton, W. H., jr.* 

Kennedy, D. C 

Cabin Creek Operators. 

Cabell, C. A. Laing, John. 

Big Coal River Operators' Association. 

Hornickel, G. H. Morton, D. H. 

Fairmount Field. 



Fleming, Brooks. 
Lyon, Frank. 



Gross, B. B. 



Clark, B. M.* 
Forsythe, J. C* 
Boulton, Harry. 
Watkins, T. H. 
Shilliiigford, G. Webb. 



Beeson, A. C. 
Jenkins, C. H. 



Spraker, J. D. 
Brennan, E. 



Separate Companies. 
Snyder, P. M. Evans, AY. M. 

CENTRAL PENNSYLVANIA. 



Bracken, M. J. 
Scott, H. B. 
Caseley, J. N. 
Kelley, Thos. F. 
Wetter, J. Wm. 



Sommerville, J. S. 
Sommerville, B. H. 
Jones, AY, A.^ 
INIaxwell, G. B. 



THE ACCEPTANCE OF THE DECISION. 

In the opening hearing, January 12, 1920, Mr. John L. Le^Yis. act- 
ing president of the United Mine Workers of America, recorded an 
agreement to abide by the findings and award of the cormnission. 
His statement follows: 

I am advised, Mr. Chairman, that the United Mine Workers 
are here to assist the Bituminous Coal Commission in every 
proper and practical way to arrive at their conclusions, and to 
cooperate in every manner, and to submit our interests to the 
conmiission, without reservation, and shall abide by the judg- 
ment of the commission. 

The operators in all districts, w ith the exception of — 

Southern Appalachian Coal Operators' Association, represent- 
ing eastern Kentucky and Tennessee, 



1 Speakei- at the hearings. 



KEPORTS OF BITUMIXOUS COAL COMMISSION. 17 

Alabama Coal Operators' Association, 

Colorado Fuel c^- Iron Co., 

Operators' Association of AVestern Kentucky (represented by 

Mr. V. G. Moore), ^ ^. . . 
New River Field of West Viroinia, 
Georges Creek Coal Operators' Association of M;wvland, 

also appeared before the commission and aorced to submit the mat- 
ters in controversy to the connnission and abide by its findings and 
awards, only pointing out their legal inability to agree to fixed 
prices. 

XoTE. — The Colorado Fuel i)c Iron Co. notified the commission that 
the company does not operate under contract with the United Mine 
Workers of America, but forwarded a detailed statement of working 
time for the month of October, 1919, of all emplo^'ees at six of its 
mines ** in the hope that it will be helpful to the commission in its 
determination of wage rates to apply to Colorado coal operations." 

^Ir. V. G. Moore, representing the Operators' Association of West- 
ern Kentucky, stated that the operators of the association which he 
represent<?d (operating in Hopkins County and associated mines) 
would not undertake to defend their position before the commission. 
The reason for this, Mr. ^loore stated, was that the operators in his 
association were already acting nnder a contract with the United 
Mine Workers of America, and that the said contract had not ex- 
pired. In reply to a question by Commissioner White, JNIr. Moore 
stated that the contract of his association with the United Mine 
Workers of America carries a stipulation that " in the event the 
wage recited in the contract between the United Mine Workers of 
America and the Western Kentucky Coal Operators' Association is 
altered by contract, then the wage scale recited in our contract shall 
be increased or decreased proportionately." 

Mr. Moore further stated : 

If the award of the commission should later become the basis 
of a contract between the United Mine Workers of America and 
the AA'estern Kentucky Coal ()])erators' Association, then our 
wage scale would have to be increased or decreased proportion- 
ately under that contract. 

The re})resentative of the Xew River Coal Operators' Association 
of Wesi Virginia, Mr. T. L. Lewis, stated that his association was 
riot a party to the decision of the commission because of the fact 
that in the Xew River field a new contract had been established " by 
order of the Department of Justice as of February 1." Mr. Lewis 
-tated that he did not consider that the operators he represented 
were " bound by the decisions of the commission outside of that con- 
tract itself." 

169222°— 20 2 



18 KEPOPvTS OF BITUMINOUS COAL COMMISSION. 

The Georges Creek Coal Operators' Association of Maryland, 
through its president, John S. Brophy, informed the commission 
by letter that — 

There is now in full force and effect an agreement betwen individual coal 
operators of tlie Maryland and upper Potomac coal fields and their respec- 
tive employees * * * This agreement is dated May 6, 1918, and signed 
by the representatives of the operators and their employees and approved 
by the United States Fuel Administrator on May 15, 1918, continuing for a 
period of at least two years and thereafter subject to revision upon 90 
days' notice. 

This agreement was made necessary, so as to be consistent with President 
Wilson's order to the Fuel Administrator, under date of October 27, 1917, 
and Dr. Garfield's order of October 29, 1917, providing methods for the ad- 
justment of disputes betw^een the employers and employees of the non- 
union coal fields, of which Maryland and the upper Potomac districts are a 
part. The umpire appointed under the agreement is adjudicating all claims 
appealed to him, including the question of the 14 per cent. 

Mr. Brophy stated that in view of the facts above presented he 
did not see how he could advise the members of his association to 
present their positions before the commission. 

ACKNOWLEDGMENTS. 

The figures submitted by the miners and the operators were not 
sufficiently exhaustive to form the complete basis for the commis- 
sion's decision, and for that reason the commission obtained much 
additional information which was of great value in determining the 
findings on which its awards and recommendations are based. 

The commission, therefore, desires to make full acknoAvledgment 
not only to the miners and the operators for the character and quan- 
tity of the additional and specific information furnished at its re- 
quest, but also to the various departments of the Government that 
under the authority of the Executive order previous^ quoted co- 
operated with this commission. 

In this connection the commission desires to call special attention 
to information and assistance furnished it by the Bureau of Labor 
Statistics, the Bureau of Internal Revenue, the Geological Survey, 
the Bureau of Mines, the Federal Reserve Board, the Federal Trade 
Commission, the United States Council of National Defense, the 
United States Railroad Administration, the Department of Justice, 
the Interstate Commerce Commission, and the Library of Congress. 

The commission furthermore wishes to make acknowledgment for 
aid and information furnished it by the Bureau of Applied Eco- 
nomics, the Bureau of Railwaj' Economics, the American Institute of 
Mining and Metallurgical Engineers, and those insurance companies 
having data on the industrial hazard of coal mining. 

In addition, and before taking up the general discussion of the 
relations existing between the miners and the operators, we wish to 
call attention to the fact that not all the criticism which the general 



BEPORTS OF BITUMINOUS CO.U. COMMISSION. 19 

public has directed against the miners and operators is justified, be- 
cause in some instances we have found abuses on the part of both 
wholesalers and retailers, who have added excessive charges and 
passed the blauie for their i)ractices on to the two producing groups. 

HISTORY OF THE CONTROVEESY. 

Tn considering the various claims of the miners and operators, we 
made an examination of the conditions which led up to the strike 
aiul found that the scale agreement of the central competitive field, 
effective from April 1, 1914. to April 1, 191(). was merely a reaflirma- 
tion of the wage-scale agreement adopted April 1, 1912. 

The 191G new wage agreement was the result of a joint conference 
which opened at ^lobile. Ala., February 8, 191(>, and reconvened in 
Xew York City February -24, 1916. The agreement was concluded 
^farch 9, 1916, effective April 1, 1916. and provided for the ending of 
the agi'eementj)n MarclLj»l, 1918. This agi'eement provided for an 
advance of three cents_per ton at the basing points, plus elimination 
of the differential between the Pittsburgh thin vein and the rate then 
existing in eastern Ohio. It also provided for a universal adoi)tion 
of the mine-run system of pay in the central competitive field and for 
n per cent increase over existing prices on day labor, dead work, 
yardage, and room turning. 

Following the adoption of this agreement, the full etfect of the 
war, which had been raging in Europe since August. 1914, began to 
be felt in this countrj- through increased cost of living resulting from 
purchases of supplies by the allied nations. 

As a result of these increases in living costs and the sudden rise in 
the selling price of coal — due to the abnormal demand — the miners 
became dissatisfied with their wage rates, particularly in the eastern 
section of the United States. Tlie-hibor-situation also became acute 
b}' reason of the fac^ that immjgi-iition had been cut off and the al)- 
rionual deinand^for all kinds of production Iiadciiused a shortage of 
men. with the result that industries began bidding against each^ther 
for men by increasing wage rates or by paying bonuses. \ 

This condition made itself felt in the mining industry in central 
Pennsylvania and certain of the West Virginia fields in the fall of 
'010 and almost immediately spread throughout the country. The 

suit of this was that in some sections, where bonuses were not 

fered, the miners resorted to strikes t^ for^e their employers to 
..ioet the situation developed at tlip neighborinir nnfje wherf- n lionus 
had been voluntarily granted. 

So serious did this situation become that in several large mining 
districts it threatened to wreck the entire joint relationshi[) in ccn- 



20 EEPOETS OF BITUMINOUS COAL COMMISSIOI^. 

tracts then existing between the operators' association and the United 
Mine Workers of America. 

To meet this situation an informal-4omt conference of coal opera- 
tors c^tnd coal 3niners of western Pennsylvania, Ohio, Indiana, and 
Illinois (the central competitive field) met in Indianapolis, Ind., 
April 5 and 6, 1917. This informal conference resulted in the hold- 
ing of a formal interstate joint conference of the central competi- 
tive field at the McAlpin Hotel, New York City, April 12 to 17, 

1917. This conference concluded an agreement bearing date of 
April 17, 1917, effective April 16, 1917, to continue until March 31, 

1918, and providing for an advance of 10 cents per ton on pick and 
machine mining rates, and, on all day labor, an increase of 60 cents 
per day, including monthly men — no advance on dead work or 
yardage. 

Following this agreement, with the continued demands of the war- 
ring nations for the products of the United States, the situation in 
the coal-mining industry, particularly as to selling prices and labor, 
kept growing more unsatisfactory, inasmuch as other industries kept 
bidding for labor — and the living costs continued to increase, with 
the effect of both miners and operators forgetting their contract obli- 
gations — individual operators raising wage rates or paying bonuses 
to attract labor from competing mines and the miners in other mines 
striking to force their employers to pay increased wage rates or 
bonuses. 

In the meantime the country became alarmed over the situation, 
and an attempt was made, through Franklin K. Lane, Secretary of 
the Interior, to bring about a stable situation with respect to selling 
prices of coal, which resulted in the formation of a coal committee as 
part of the Council of National Defense, with Mr. F. S. Peabody, of 
Chicago, as chairman. This committee called a meeting of coal oper- 
ators from all parts of the United States to convene in Washington 
early in June, 1917. As a result of this meeting there was promul- 
gated by the committee a set of prices for bituminous coal through- 
out the United States, which was agreed to by the coal operators. 

This agreement is known as the Peabody-Lane agreement. The 
price agreed upon was effective July 1, 1917. 

In July, the President, under the Lever law, fixed the prices at $2 
per ton f . o. b. mines, effective August 20, 1917. 

A Fuel Administrator was appointed August 21, 1917. This, of 
course, eliminated the production committee and Dr. H. A. Garfield 
took full charge of the coal industry of the United States. 

The situation had at that time again become acute, with the result 
that a joint conference of coal operators and coal miners of the cen- 
tral competitive field was held in Washington, D. C, September 25, 
1917, which resulted in an agreement bearing date of October 6, 1917, 



EEPOKTS OF BITUMINOUS COAL COMMISSIOIT. 21 

I^roviJin*^ for an advance of 10 cents per ton on pick and machine 
mining rates, and an advance of $1.40 per day to all day labor and 
monthly men. with a 15 per cent advance on yardage, dead work, and 
room turning. This agreement provided for an automatic penalty 
clause which was an extension of a practice in eti'ect in several large 
districts and was subject to the follamng conditions : 

This agreement is subject to and will become etfective only 
on the condition that the selling price of coal shall be advanced 
by the United States Government sulticient to cover the increased 
cost in the diti'erent districts atfected and will take effect on tho 
first day of the pay period follov.ing the order advancing such 
price. 

It also provided, subject to the next biennial convention of the 
United !Mine AVorkers of America, that the mine workers' representa- 
tives agree that the then contract be extended during the continuation 
of the war. but not to exceed two years from April 1, 1918. Follow- 
ing the adoption of this agreement, on or about October 27, 1917, the 
United States Fuel Administrator issued an order increasing the 
selling price of bituminous coal 45 cents per ton, effective Xovember 
1. 1917, to cover the int-rea^e in wages provided in the aforesaid 
agreement. 

In January, 1918, the biennial convention of the United Mine 
Workers of America met at Indianapolis, at which meeting the 
Washington wage agreement was adopted by the convention. Dur- 
ing August, 1918, the United Mine Workers of America again made 
appeal to the United States Fuel Administrator for a further in- 
crease in wages, due to the increased cost of living. 

Dr. Garfield denied this request. 

In February, 1919. P'rank J. Hays, then president of mine work- 
ers, called a meeting of the international executive board, presidents 
of the different districts, and other representatives at Indianapolis, 
which meeting was termed a meeting of the policy committee. This 
policy committee adopted a report, embodying the following de- 
mands : 

1. A substantial increase in wages. 

2. A six-hour day. 

3. Nationalization of coal mines. 

The next important step was the interpretations placed upon the 
policy committee's report by representative leaders of the United 
Mine Workers in different parts of the United States, which inter- 
pretations resulted in the formulation of demands of the United 
Mine Wnrkvi- by tho cr.n vent inn licld at Cleveland, September 22, 
1910. 

A joint confcicnce of coal miners and opei'ators of the central 
competitive field was called at Buffalo, September 23, 1919. Tho 



22 REPORTS OF BITUMINOUS COAL COMMISSION. 

miners submitted the demands of the Cleveland convention iii writ- 
ing to the operators. The joint conference of the miners and op- 
erators recessed at Buffalo on October 2 and reconvened at Phila- 
delphia on October 9, 1919. to continue negotiations, but adjourned, 
sine die and without agreement, on October 11, 1919. 

On October 15 Acting President John L. Lewis, of the United 
Mine Workers of America, sent out a strike order to the members 
of his organization, calling for cessation of mining operations on 
midnight of October 31. 

On October 17, W. B. Wilson, Secretary of Labor, invited a con- 
ference of the scale committee of operators and miners to meet at 
his office Tuesday, October 21. The scale committee of the operators 
and miners met in Secretary Wilson's office for four days, but on 
October 24 Secretary Wilson stated that he had been unsuccessful 
in his efforts and that a further conference would be useless. 

On November 1, 1919, the strike began. About 400,000 union 
miners walked out. About 200,000 nonunion miners remained at 
work. 

In the meantime, on October 21, the xA^ttorney General filed a bill 
in equity in the United States district court of Indianapolis pray- 
ing for an injunction restraining the miners from striking. Such 
an order was issued by Judge A. B. Anderson, and was followed by 
a writ of temporary injunction dated November 8, under which the 
union officers were ordered to cancel and revoke the strike order, 
which order was accordingly revoked in a form approved by the 
court, but the men did not return to work and in effect the strike 
still continued. 

President Wilson asked Fuel Administrator Garfield to resume 
his duties on October 30. The Fuel Administrator at once put into 
effect an order restoring war-time prices and distribution of both 
anthracite and bituminous coal. 

Government maximum prices, which had been in effect during the 
war, had been suspended by an order of the Fuel Administrator dated 
January 18, 1919, effective February 1, 1919. (It must be remem- 
bered that from February 1 "until October 30, 1919, no restrictions 
were in effect either as to prices or distribution of bituminous or 
anthracite coal.) 

Following the strike order more and more coal was seized by the 
Fuel Administrator and distributed by the Railroad Administration 
as the country began to feel the pinch of the strike. 

All that time the miners took the stand that their contract with 
the operators had expired because the war, to all practical pur- 
poses, was ended, while the operators claimed that the miners had 
broken their contract, because they had agreed to work until April 
1, 1920, or until peace was promulgated. 



REPORTS OF BITUMINOUS COAL COMMISSION. 23 

On Xovember IS Sooretary of Labor W. R. Wilson i.-siied an 
invitation to coal miners and operators from all the bituminous coal 
prcKlucing Helds of the United St-ates to meet at Washinoton, and a 
conference was held at which the Secretary of Labor made several 
sutr.irestions : First, that a general joint conference of all the fields of 
the United States be held. Second, that the central competitive field 
hold its joint conference and the other producing districts hold their 
joint conference concurrently with the central competitive field. 
Third, that the central competitive field take up and begin negotia- 
tions again. The third of these propositions was accepted and the 
joint conference was again convened. 

Dii ^November 20 t he operators made a proposition giving an 
advance of 15 cents per ton on pick and machine mining and 20 per 
cent on day work, conditioned upon the Fuel Administrator grant- 
ing an increa.^e in selling prices. This olfer was rejected by the 
miners, who reiterated their original demands. These were modified 
the next day, Xovember 21, by a demand for a 40 per cent increase, 
which* was innnediately voted down by the operators. Following 
this Seci'etaiT Wilson ended the meeting by submitting a proposition 
providing for an increase of 31. (Jl per cent to the wages of the 
miners. 

On Xovember 21, 1919, Dr. Garfield appeared before the joint com- 
mittee and enunciated the following principles: 

(1) The public must not be asked to pay more than it is now 
paying for coal unless it is necessary to do so in order to provide 
reasonable wages to the mine workers and a reasonable profit to 
the operators. 

(2) The arrangement entered into betAveen the operators, the 
mine workers, and the Fuel Administrator, with, the sanction of 
the Pre.sident of the United States in October, 1917, was intended 
to equalize the wages of all classes of mine workers and to be 
sufficient to cover the period of the war, but not beyond March 
31, 1920; hence the only increase in cost of living which can now 
be considered is the increase above that provided for by the 
average increa.-e in 1917; that is to say, the average total increase 
in pay over the 1913 base, which was the l)ase considered in 1917. 
should not exceed the present average increase in the cost or 
living oyer the same base. It is also to be considered that the 
cost of living will fall rather than rise during the next few years. 

(3) The maximum pric^.s fixed by the Government on coal 
were calculated to increase production of coal for war purposes. 
Coal was basic and the increase imperative. The public ought 
not be asked to pay and will not now pay the increase over 
normal profits then allowed for the purpose of stimulating pro- 
duction. 

(4) Any increases in wages now arrived at on the bfisis of the 
foregoing [)rincip]es should be borne by the operators or the 
public or both, as may Ikj deteruiined by the application of 



24 EEPOETS OF BITUMINOUS COAL C0MMISSI02T. 

these principles, and should take effect as of the date when the 
men returned to work. 

(5) The needs of the United States are not alone to be con- 
sidered; Europe is in desperate need of coal and should have 
all that we can spare. 

On Wednesday, November 26, Dr. Garfield stated his conclusions 
as follows : 

Dr. Gaefield. Having previouslj^ laid before j'oii tlie line of action to be 
pursued by the Fuel Administration, and later the principles which were 
governing us, I bring you to-night the conclusions. On the 24th instant I 
announced that the public must not be asked to pay more than it is now 
paying for coal unless it is necessary to do so in order to provide reason- 
able wages to the mine workers and a reasonable profit to the operators. 
Careful investigation forces me to the conclusion that, in accordance with 
this and other principles set forth in the statement of November 24, the 
public must not be required to pay any increase in coal prices at this time. 

* * * :;= >:: * * 

Applying the principles set forth in paragraph 2 of the statement of 
November 2,4, when the average increases in wages since 1913 for the 
various classes of mine workers are deducted from the increase in the cost 
of living since that time, we arrive at the amount of additional increase in 
w^ages justifiable at the present time. I have taken the figures of the 
Bureau of Labor Statistics for both cost of living and for the weighted 
averages of wage increase. According to these figures the cost of living 
has risen 79.8 per cent since 1913, and the amount necessary to bring the 
average wages, of- mine workers up to this point at the present time is 14 
per cent. 

The miners rejected this proposition, but Avere willing to accept the 
Wilson proposition. The operators immediately issued a statement 
accepting the proposition of Dr. Garfield. 

The strike still continued, and on December 3 Dr. Garfield issued 
an order restricting the use of coal to essential purposes. 

In the meantime the leaders of the United Mine Workers were 
summoned to appear before Judge Anderson on December 9 to 
answer charges of contempt of court in not obeying the court's orders 
to stop the strike. 

On December 6 an understanding was reached for the settlement 
of the strike controversy which was accepted by the miners in their 
conference at Indianapolis, December 10. 

Work was resumed as soon thereafter as possible. 

Dr. Garfield then resigned as Fuel Administrator and on December 
20 the President created this commission, with powers and duties as 
previously outlined herein. 

AMOUNT OF 14 PEK CENT INCKEASE PAID BY CONSUMING PUBLIC. 

It was developed in the hearings before the conmiission that the 
major portion of the tonnage shipped since the 14 per cent increase 
was shipped under contracts which carried what is generallj^ known 
as a standard wage clause and Avhich provided for an increase in the 
cost to the purchaser equivalent to the increase in cost resulting from 
an increased wage scale. The commission inquired into this subject 



REPORTS OF BITUMTXOrS COAL COMINIISSION. 



25 



nt some length; and while the information snbmitted is incomplete, 
we believe it is fair for ns to report that in the neiohborhood of 80 
per cent of the total tonnage that has moved since October 31, 1919, 
has moved nnder snch contracts, and the consmner has paid, or will 
pav. an amount equal to the increase in tlie labor cost on the tonnage 
stated. 

This >tatement is made in order that there may be no misunder- 
standing on the part of the public and the i)ublic rate-making au- 
thorities. 

INTERMITTENCY IN WORKING DAYS. 

Irregularity of mining operations is the pj.-hnary cause of the un- 
satisfactory condition of the industry and results in high prices of 
coal and dissatisfaction among the miners. 

The principal causes of this irregularity are the seasonal character 
of the nuu-ket and the inadequacy and irregularity of car supply. In 
order to stabilize the industry and alleviate the irregularity of the 
market, we feel that the purchasing and consuming public on the one 
liand, and the carriers on the other hand, have certain specific duties 
to perform. 

It is evidently the public's duty to aid in the stabilization of the 
coal market by purchasing and arranging to store as much coal as 
J30ssible during the spring and sunnuer. It is the carriers' duty to 
furnish as much equipment as possible for the movement of coal, and, 
above all. to see that there is no discrimination in the distribution of 
the equipment which is now at their disposal. 

In considering these facts, we had in mind the two basic principles: 

(1) That a seasonal demand develops a seasonal price, which 
is a double charge against the consumer, since tliis price must be 
high enough to carry the expenses of the dull period and also 
high enough to carry the extra expenses of additional equipment 
needed to handle the business in rush periods. 

(2) That seasonal idleness breeds unrest in any group of men 
and in any industry. 

The coal industry is a jyart-time indu.^ry, the number of idle da3^s, 
out of a possible 308 working-days, being G3 in 1918 and 115 in 1919. 
On the average for the i)ast 30 years, the number of possible working 
days, when the mines were not in operation, was 93. This loss of 
time may be analyzed by causes for the last two years as follows: 



Caii=;e of idle time. 


1918 


1919 


Car shortage . . . : 


Per cent. 
49 
23 
14 
8 
6 


Per cent. 
17 


I a^or'^hort ape and strikes.. . . 


25 


Mine di ability 


6 


No market 


50 


Other causes 


2 







26 REPORTS OF BITUMINOUS COAL COMMISSION. 

It will be seen that in 1918, when the demand for coal was at its 
maximum, the principal cause of the lost time was car shortage, and, 
in 1919, when the war demand had ceased, "no market" axjcounted 
for one-half of the idle days. Labor shortage and strikes accounted 
for about one-fourth of the lost time, and mine disability was re- 
sponsible for 14 per cent in 1918 and for 6 per cent in 1919. 

While coal production increases in accord with national develop- 
ment on an average of approximately 10 per cent per year, yet coal 
production in normal times varies from year to year with general 
industrial conditions. Periods of prosperity and great activity are 
marked by a large production of coal, since fuel is the foundation of 
all industrial enterprises, while years of depression are also low-ebb 
years in coal mining. 

In only a few instances, however, does the industry show a loss 
of time below 78 working-daj^s in a year, so that it is a fair inter- 
pretation of the facts that many days of idleness occur in the in- 
dustry regardless of the general level of industrial prosperity.. This 
amount of lost time may be ascribed to two main causes: (1) Over- 
development of the industry, and (2) irregular distribution of the 
demand for coal through the year. This results in periods of no 
market, when mines and railroad cars are idle because of a shortage 
in demand for coal, followed by periods of great demand, when 
mines would be worked to capacity were it not for the lack of coal 
cars for the transportation of the product. At the present time 
America requires less tlian 500,000.000 tons of bituminous coal a 
year, while the capacity of the mines in operation is over 700,- 
000,000 tons. 

Under the stimulus of war demand many new mines were opened 
and many old ones expanded in order to secure sufficient coal to 
meet the exceptional and urgent national requirements. As a result, 
the coal industry, which was speculatively overdeveloped before the 
war, is still more overdeveloped now and employs more capital and 
more labor than is necessary to supply the present needs of the 
country. 

It is not to be expected that exports of coal will increase suffi- 
ciently to absorb a perceptible proportion of the gap between the 
demand for coal and the capacity of mines, as our shipping-terminal 
facilities are such that not more than 25,000,000 tons of coal a year 
can at present be exported. 

Full-time employment in the coal mines can not, therefore, be 
expected until the industry is put on such a basis that only those 
mines remain in operation whose output is required to supply the 
annual needs of the country. 

Even if the overexpansion in the industry were remedied there 
would still be a considerable amount of irregularity in operating 



REPORTS OF BITUMIXOUS CO.VL COMMISSION. 27 

time so long u< the demand for the hulk of the coal remains concen- 
trated in certain months, with idleness of cars during the slack 
months and shortage of cars during the peak montlis. 

We believe that steps in the direction of standardizing the de- 
mand for coal should be taken by the principal consumei-s, and are 
in possession of evidence that many of the largest consumers of 
coal delay purchase and delivery until the late months of the year 
and that outside of that part of the central competitive field having 
Great Lakes shipments, the smallest movement of coal to consuming 
terminals is in the spring and early summer, at which time some 
mines are closed down while others operate irregularl}^ with result- 
ing loss of time to the men, idleness to capital invested in mines, and 
railroad cai's, and increased cost of coal to the public. 

The seasonal nature of the demand for coal makes it necessary 
for the mining companies to maintain a capacity sufficient to meet 
the maximum demand in a comparativel}^ short period of time. 
This excessive capacity involves the employment of a large labor 
reserve and is one of the main causes of the labor unrest prevailing 
in the industry. -Xor does this fluctuation in production affect only 
the mine and the miners themselves, but spreads to the railroads and 
through the railroads to the entire productive machinery of the 
Nation. 

For many years the railroads, and especially the coal-carrying 
railroads, have to a great extent depended on a practice that has 
grown up of protecting themselves in the winter months by com- 
mandeering coal consigned to other consumers. In some degree the 
pul)lic utilities have counted on this form of a priority. The rail- 
roads are consumers of about 30 per cent of the total coal produc- 
tion of the country, and we have pr^ented to certain of the execu- ; 
tives of the larger systems a request that the railroads accept the 
l»i-inciple that it is their duty to the public to move coal in the 
months that normally are months of low movements to consumption 
terminals, such movement to be in excess of their then needs, thereby \ 
gi'adually accumulating a three months' supply before the winter, the I 
railroads to come out at the end of the winter with possibly 20 or 
oO days' supply on hand. This movement would be more economical 
than the movement in the winter, and, from the standpoint of the 
coal railroads at lea.'^t, the lower cost of movement would, to a great 
degree, oflfset any cost of storage. 

The acceptance of this principle by the railroad executive heads 
lias b^en general. The Pennsylvania Railroad and the New York 
Central lines expressed their acceptance in an especially liberal 
spirit. We wish again to state that this is a duty of the railroads 
and that some method should be devised under which they will pro- 
vide such storage. 



28 EEPQRTS OF BITUMI]!^OUS COAL COMMISSION. 

In the case of the public utilities we believe that the}^, too, have a 
duty to perform to the public and should not rely on any form of 
priority when the pressure comes in the winter, and to this end they 
should be called upon to move and store coal in the summer months 
in excess of their needs, going into the winter months with 60 days' 
supply in storage. We feel that these two groups owe this as a duty, 
and that in both cases, if there is an increased cost, it will be recog- 
nized by the rate-making authorities. In the case of the public utili- 
ties it was in effect stated by a representative that he believed this 
plan or principle was sound. 

The next largest group of coal consumers is the steel industry. 
We have presented the problem to certain of the heads of important 
steel concerns, including the United States Steel Corporation, and 
they express an intention of increasing storage of coal and movement 
of the same in the months of low movement along the lines of the 
plan here suggested. 

It is believed that the Federal Reserve Board and the several Fed- 
eral reserve banks will favor considering as eligible for rediscount 
paper drawn against coal in storage. 

In addition to these groups, we recommend strongly that all Gov- 
ernment institutions, national. State, municipal, and local, purchase, 
'jreceive, and store coal during the spring and summer months in an- 
ticipation of the winter's requirements. 

We believe that if the various groups mentioned carry out the plan 
of storing from two to three months' requirements, beginning the 
winter with this supply on hand, the result will be a decided stabili- 
zation of the coal industry, a considerable measure of relief to the 
carriers, and a general economic saving to the public and the Nation, 
and, further, that the practice would result in the minimizing of the 
commandeering and confiscation of coal on the theory of priority. 
We feel, too, that unless some plan of this kind is adopted, we are 
bound to have recurring conditions of coal shortage in the winter 
months as in the past three years, and that no need for such a situ- 
ation exists. 

In this connection, the question of the practicability of storing 
bituminous coal arises. We are fully aware of the difficulties in- 
volved, but feel, on the basis of expert opinion, that these difficulties 
are not insurmountable. In support of this position we quote ^Ir. 
Van H. Manning, Director of the Bureau of Mines : 

All types of bituminous coal have been successfully stored, but it can 
also be said that spontaneous combustion has occurred with all types of 
bituminous coal. Practical experience with certain coals has shown their 
tendency to spontaneous heating. Chemical analysis does not furnish an 
explanation of the cause. While the inherent qualities of bituminous coal 
doubtless have a bearing on the tendency to spontaneous combustion, over- 
emphasis of this fact has diverted attention from the more important facts 
of proper- handling and storing methods. 



EEPOKTS OF BITrMlXOrS COAL COMMTSSIOX. 29 

The nenting of oonl is due to the oxidation of the snrfaee of the coal 
substance itself. This oxidation is rehitively rapid with freshly ])roken 
surfaces. The rate of oxidation is also more rapid as the temporature 
• increases. These are important factors in the storaj^e of coal. 

The larirer part of exposed coal surface is contained in the tine or slack 
c«»al. The removal of this line coal from the mass removes the greater 
cause of spontaneous heatin.u. With the line coal removed, nut and lump 
coal, if not broken in the process of handlinir, can be stored without dan- 
ger of spontaneous combustion. 

If the method of putting cord into storage is one whicli produces freshly 
broken surfaces of coal, the chance of spontaneous combustion is greatly- 
increased, since the rate of oxidation of fresh coal surfaces is nuich greater 
than that of older surfaces. Coal liri'akage is to be avoidml for three 
distinct reasons : 

1. The degradation in si/.e makes it less acceptable Cor all haiid-lired 
oi)erations. 

-. There is an increased oxidi/.al)le surface to generate heat. 

o. The surface, being freshly broken, generates an added amount of heat. 

If it is necessary to store line coal or run-of-the-mine coal, the pile should 
be so constructed that there is no segregation of sizes in the l)nilding of 
the pile. Coal can continue to generate heat only by the continued access 
of air to the pile. The air within the pile will have to be renewed from 
30 to 40 times in order to supply a sulhcient amount of oxygen to raise the 
pile to a dangerous temperature. If the air movement through a pile can 
be sulhciently restricted, the temperature will not reach a dangerous point. 
Complete protection from the air, as can be had in subaqueous storage, is 
a sure preventive of spontaneous combustion. A pile compactly built 
with the tine and coarse material distributed throughout the whole pile 
may keep the air movement through the pile at a point low enough to 
insure protection against heating. If. however, there is a graduated segre- 
gation from tine to coarse, there is likely to be some place within the pile 
presenting the most favorable condition of moderate air supply to produce 
dangerous temperature. 

Very thorough ventilati(m of a coal pile, such as ventilating openings 
from top to bottom of the pile every 16 inches, has succeeded in preventing 
undue lieating in coal piles in northern climates. Any less extensive 
method of ventilation through fine coal is of doubtful value and is not to be 
recommended. 

The presence of sulphur in coal is thought by many to be the cause of 
spontaneous combustion, but occurs in coals of both high and low sulphur 
content. The oxidation of some forms of sulphur in coal breaks the coal 
and increases the coal sui-face. The form in which sulphur occurs in the 
cOal, rather than its absolute amount, .seems to be the point of interest in 
this matter. 

Storing wet coal or the altern.nte wetting and drying of coal is belitn-ed 
by many to be favorable to spontaneous combustion. It is prol)able that 
the result is largely mechanical in that with wet tine coal a nearly im- 
pervious blanket is placed over a portion of coal, so that normal ventilating 
currents fail to carry off the heat generated. 

Since tho r>xidation of coal is greater at increased temperatures, ex- 
traneous .sources of heat nnist be kept from coal in storage. A very com- 
mon cau.se of spontaneous combustion is piling coal again.st a hot boiler 
.setting or around a hot steam pipe, or over a warm ventilating drain. 

The boating of small piles of coal (under 20 tons), such as stored by the 
domestic consumer, is so extremely rare as to be negligible. In larger 
l)iles. such as stored l)y apartment houses, .sclipols, and small factorie, 
care should be taken in storing coal, the pile in.spected each day to detect 
evidences of heating . 

Where coal is put into storage by means of a chute, the tine coal accumu- 
lates under the chute, and if heating occurs it is apt to be at this point. 
If rods driven into the pile at this i»oint appear warm to the hand when 
withdrawn, trenches in the pile should be made thnuigh the warm coal, so 



30 EEP©RTS OF BITUMINOUS GOAL COMMISSION. 

as to allow it to cool. The storage of large amounts of coal can be under- 
taken if due care is exercised in the selection and handling of the coal ; the 
details have already been well illustrated in publications of the Bureau 
of Mines and the University of Illinois. 

A further item to be considered is the cost of handling coal from 
storage. Breakage in rehandling must also be taken into account 
and arrangements must be made for providing necessary facilities 
and space for stored stocks. In spite of the additional costs involved, 
it is believed that storage of coal by the consumer at the point of ulti- 
mate consumption offers the best solution for the problem, since this 
would provide for the storing of smaller lots than if storage should 
be undertaken as an intermediate step. 

It must be remembered that in large operations, such as the steel 
and the coal industries, the cost and facility of transportation is 
vital in keeping down the cost of the product, while to t?ie ultimate 
consumer the costs which are added by the retailer and the middle- 
men are even greater factors. 

The Nation's total freight-car supph^ was inadequate even before 
the war, and many mines were shut down for longer or shorter pe- 
riods, even without regard to seasonal movement, simply as a result of 
car shortage. 

We believe that it is urgenth^ necessary for the railroad co mpan ies 
to construct an additional number of all types of freight cars, in 
order that they may be in a position to use the open-top cars exclu- 
sively for the purposes for which they were intended. 

The carriers of the country own nearly a million open-top cars 
and depend upon coal transportation for about 30 per cent of the 
total railroad traffic. On certain roads fuel transportation amounts 
to more than 50 per cent of the freight moved. The idleness of coal 
cars during the summer months, coupled with the excessive activity 
during the fall months, forces the railroads themselves to employ a 
large number of men and to provide for a surplus amount of rolling- 
stock for winter months and an excessive amount of storage yards 
during the summer period when the cars are not in use. This in turn 
is an added burden upon the people of the United States through a 
general increase in traffic charges, as well as in the increased cost of 
coal. 

The recommendation is made that the Interstate Commerce Com- 
mission make the necessary provision, within its jurisdiction, to 
enable the railroads to provide a sufficient amount of rolling stock, 
motive power, and other facilities to meet the demands of industry. 
We feel that even if this additional construction should be reflected 
in rates it would be ultimately to the advantage of the consumer, as 
all industries suffer from intermittency in distribution, and the pub- 
lic bears the cost of tliis intermittency in the higher price of all com- 
modities, particularly coal. 



REPtKTS er BITUMINOUS C#AL C©MMISSI*N. 31 

Tills coiuiition can only be rectified by the construction of sufficient 
freifrht cars of all types and of a sufficient number of locomotives to 
handle them. 

Conditions in this respect have become considerably worse during 
the last three years. Prior to the war freio^ht-car construction of 
all types averaged about 125,001) cars per year. During the war 
period and since the armistice, although the need for cars increased, 
the total freight-car construction of all types has been but 250,000 
cars. This means an average annual production during the past 
three years of only about two-thirds of the previous yearly car 
output. 

During the war the existing car erjuipment was more strenuously 
utilized and repairs were consequently delayed, so that car mortality 
has been very heavy. This has been aggravated by the fact that 
cars allocated to foreign lines have received even worse treatment 
and have suffered still greater deterioration. 

The additional expansion of the coal industry during the war, 
by increasing the number of mines to be served by the railroads, has 
also aggravated the situation and has rendered the car equipment 
still more inadequate for the purpose of an effective coal distribution. 

The consequence is a >erious shortage of all freight cars, resulting 
in many instances in the diversion of open-top cars to the movement 
of commodities of higher classification and rate — commodities which 
under ordinary conditions would move in box cars. The coal indus- 
try suffers from this diversion, as it diminishes still further the num- 
ber of cars available for the transportation of coal. 

At the same time it is realized that the carriers can not be expected 
to provide a sufficient number of coal cars to take care of the peak 
of the business during the months requiring maximum delivery, and 
to carry and store the extra equipment during the slack months. 

It is our belief that a more even distribution of the. demand for 
coal throughout the year will be an important factor in overcoming 
this difficulty. 

The following suggestions have been made to the commission as 
to methods of overcoming car shortage, car irregularity, and seasonal 
operation : 

1. A difference in railway freight rates on coal tx) be gradu- 
ated through tlie summer months in districts other than those 
moving coal to the Great Lakes. Thia question, however, is 
properly within the province of the Interstate Commerce Com- 
mission to decide, and the conmiission has recommended that 
this subject be given due and careful consideration. 

2. A difference between summer and winter prices of coal, such 
difference to be fixed l)y the oi)eiators, but. in view of the fact 
tliat tliere are in the neighborhood of 7,000 operators in the 



32 REPORTS OF BITUMINOUS COAL COMMISSION. 

bituminous coal industry, the commission believes, without pass- 
ing upon the legality of an agreement to reduce prices for the 
summer months, that this plan would be impracticable, 

Eailroads have depended for a great many years and to a large 
extent on their accepted right to divert coal to their own use in case 
of shortage. This practice, by protecting the railroads against ac- 
tual disaster, has resulted in a great injury to the coal industry 
and to the individual consumer of coal. 

In its investigation* the commission requested of and received from 
the United States Kailroad Administration a statement covering, 
in outline, the former and present rules with respect to the assign- 
ment of cars to mines. • 

In transmitting this statement the Railroad Administration points 
out that prewar rules covering car assignments, which tended to 
irregularity in our distribution, Avhile not universally relied upon 
by carriers, were quite generally prevalent in the East, and were 
based upon a line of decisions of the Interstate Commerce Commis- 
sion, of which the leading case is that of Traer v. Chicago & Alton 
Eailroad Co. et al. (13 100, p. 451) ; decision confirmed in the Su- 
preme court of the United States (Citation 215 U. S. 452, p. 479). 
The stat-ement follows : 

The common understanding of the prewar rule was this: If a carrier 
on contract purchased the entire output of a mine, it was entitled pref- 
erentially to assign cars to that mine for loading that coal day by day. 

If the carrier purchased only a part of the output of a mine, it was en- 
titled preferentially to place cars for the protection of that loading at 
such a mine. In the working of this portion of the rule, if the number of 
cars of railroad fuel contracted for was in excess of the number of cars 
furnished that mine that day on the regular commercial distribution of 
coal cars, the mine was entitled to an arbitrary and preferential assign- 
ment of enough additional cars to enable it to load all the railroad fuel 
obligated to be shipped under the contract. 

If, on the other hand, the number of empty cars accruing to the mine 
on tlie regular commercial distribution was in excess of the number required 
to be shipped with the railroad fuel coal, then the mine was entitled to use 
the excess of empties above those necessary to load the railroad contract 
for the loading and shipment of commercial coal. 

During the investigations we found that the evils growing out of 
the preferential assignment of coal cars Avere fully recognized dur- 
ing the war and, as a result of a conference between the President, 
the Director General of Eailroads, and the Fuel Administrator, the 
preferential assignment of cars was abolished. 

On May 24, 1918, the Fuel Administrator issued an order reducing 
tlie price of coal 10 cents per ton, in the following language (elimi- 
nating the usual preambles reciting the Fuel Administrator's au- 
thority) : 

Hereby orders and directs that all prices for bituminous coal f. o. b. 
mines in the coal-producing districts throughout the United States fixed by 
the said Executive order of the President, dated 21 August, 1917, and 
subsequent order of the United States Fuel Administrator and in effect 



KEPORTS OF BITUMIXOUS COAL COMMISSION. 38 

nt 7 a. Til. oil the 25tli dny of :Mny. lOlS. shall ho niul the same hereby are 
recliued as lu all shipnieiUs made after 7 a. in. on tho 2oth day of May, 
1018. by the siiiii of 10 rents for each not ton of 2,0(>0 pounds. 

This order shall in no way alTect (ho increase contained in the Executive 
order of the Tresident. dated 27 October, 1917, adding the sum of 45 cents 
to the price tixed for bituminous coal under the terms and provisions set 
forth in said last-mentioned order. 

On ]Mny 2^). lOlS, the effective date of the 10-cent reduction order, 

tlie followin«r riding construing the order was issued: 

The effect of the order makin?: a reduction of 10 cents per net ton from 
the mine price on all bituminous coal shipped after 7 a. m.. May 25, 1918, 
is that no one shall ask. demand, or receive, more than the applicable Gov- 
ment mine price thus reduced, for ajiy .coal shipped after 7 a. m., May 
25, 1918, unless the same was shii^ped pursuant to a bona lide contract 
enforcible at law entered into prior to August 21, 1917. Contracts made 
between August 21, 1917, and December 29. 1917. do not authorize any 
exception to the above. Contracts made after December 29, 1917, must, 
under the provisions of the order dated I^ecember 24, 1917, contained in 
rublicati(»n No. IG. provide that all sb.ipmeiits thereunder shall be at the 
applicable Government mine price at date of shipment. 

The reason for the issuance of the above orders was that the rail- 
roads, by the empk)vment of assigned cars, had been freciuently able 
to negotiate their fuel purchases at more favorable prices than the 
commercial trade, and because of relincjuishing their right to as- 
signed cars, the carriers faced the problem of having their fuel cost 
increased. 

As a concession to the railroads and in recognition of the loss that 
the deprivation of assigned cars entailed. Dr. Garfield issued his 
order of May 24, 1918. The principle of even car distribution was 
not effective, however, until approximately July 1, 1918. The delay 
was occasioned by the necessity for providing the necessary ma- 
chinery by which the railroads' fuel needs could be complemented 
when the car supply was insufficient to give them their fidl orders, 
and this was done by the Fuel Administrator's requisitioning coal in 
quantities needed by the railroads. 

The statement of the Eailroad Administration to this commission 
also states that : 

When the first uniform mine rating and car distribution rules were pub- 
lished September 10, 1918, the new rule abolishing the preferential assign- 
ment of cars for railroad fuel loading \Vas carried in the uniform mine 
rating and car distribution rules by a provision that no such assignment 
for railroad fuel loading could be had except upon authority of the car- 
servire section. This authority has never been granted since. The reason 
f<»r this provision in the rule was to take care of emorgtyicies if no other 
way <»f caring for the emergency could be found, wliether to protect rail- 
road fuel loading or otlier essential loading, the point kept in mind being 
particularly United States Navy cr»al. 

It should be borne in mind that private cars — that is, cars other than 
railroad owned, have been handled upon a somewhat similar rule as that 
which, under the prewar practice g<»verned the placing of assigned cars 
for railroad fuel loading. That is to say : The private cars were arbitrarily 
placed for the owner's k»ading. If on any day the number of private cars 
so placed did not equal the numlier of empty cars to which the mine was 
entitlefl under the commercial distribution, the mine was entitled to addi- 
tional railroad cars, to make up the deficiency. 

160222°— 20 3 



34 EEPORTS or BITUMINOUS COAL COMMISSION. 

It is understood that paragraph 402 of the Cimimins-Esch bill, 
approved February 28, 1920, places control of coal car distribution 
and assignment Avithin the jurisdiction of the Interstate Commerce 
Commission in the following language : 

The term " car service " in this act shall include the use, control, supply, 
movement, distribution, exchange, interchange, and return of locomotives, 
cars, and other vehicles used in the transportation of property, including 
special types of equipment, and the supply of trains, by any carrier by 
railroad subject to this act. 

It shall be the duty of every carrier by railroad subject to this act to 
iuriiish safe and adequate car service and to establish, observe, and enforce 
just and reasonable rules, regulations, and practices with respect to car 
service; and every unjust and unreasonable rule, regulation, and practice 
with respect to car service Is prohibited and declared to be unlawful. 

It shall also be the duty of every carrier by railroad to make just and 
reasonable distribution of cars for transportation of coal among the coal 
mines served by it, whether located upon its line or lines or customarily 
dependent upon it for car supply. During any period when the supply of 
cars available for such service does not equal the requirements of «uch 
mines it shall be the duty of the carrier to maintain and apply just and 
reasonable ratings of such mines and to count each and every car furnished 
to or used by any such mine for transportation of coal against the mine. 
Failure or refusal so to do shall be unla\\i:ul, and in respect of each car 
not so counted shall be deemed a separate offense, and the carrier, receiver, 
or operating trustee so failing or refusing shall forfeit to the United States 
the sum of $100 for each oifejise. which may tee recovered in a civil action 
brought by the United States. 

On March 4, 1920, the Interstate Connnerce Commission issued a 
recommendation to the carriers that they continue in effect the uni- 
form rules of car supply established by the Railroad Administration. 

The issuance of such a recommendation by the Interstate Com- 
merce Commission raises an inferential question as to whether the 
maintenance of even car distribution is obligatory tlu'ough the provi- 
sions in the Cummins-Esch bill, since the comment of the Interstate 
Commerce Commission is a recommendation only. 

Whether the Interstate Connnerce Commission can make such a 
recommendation a mandate is a matter not within the province of the 
Bituminous Coal Commission to decide. 

It is, however, recommended to the Interstate Commerce Commis- 
sion and to State railway commissions within their several jurisdic- 
tions that, wherever lawful, rides and regulations be issued govern- 
ing and controlling car distribution between mines, to the end that 
no particular mine or mines may be permitted to obtain preferential 
car service through the use, by ;:'ailway purchasing agents, of their 
power to obtaiii railway fuel at reduced prices through the guar- 
anteeing of car supply to favored mines or to operators with whom 
the railway may have fuel contracts. 

We make this recommendation because we find that the practice 
and abuse of car guarantees has militated against the interests of 
the general public by contributing to the irregularity of operation 
of mines not having such preferential contracts. At the same time, 



REPORTS OF BITUMINOUS COAL COMMISSIOIT. 35 

it has i-esiilted in an unfair competitive ULlvaiitage to those mines that 
secured such contracts. 

The commission also believes that railroad coal .should be fur- 
nished by the various mines in proportion to their productive capac- 
ity with due reijard to the quality of the coal. In furnishing- to 
the railroads by the various mines, their quota of coal, it is recom- 
mended that the railroads be not required to place at each mine each 
day a suiHcient number of cars for its proportionate amount of rail- 
way fuel, but that a plan be worked out permittino- the railroads to 
|ilace at each mine a number of cars sullicient to keep the mine in 
operation all day. This practice would reduce the cost of assem- 
bling railway fuel. 

In supplying to the raih-oads tlieir quota of fuel the mines shoidd 
avoid, except in emergencies, the use for that purpose of coal the 
properties of which make it more valuable for other uses. 

AGEEEMENTS. 

TTe recognize tluit joint agreements resulting from conferences 
slu^uld be carried out fully and frankly by both parties, and that 
every proi:)er assurance to this end should be given, since it is obvious 
that all attempts at amicable settlements of controversies will now 
and forever be futile unless the principle is once and for all estab- 
lished that agreements entered between emplo^-ers and employees arc 
binding upon both parties and arc not to be considered as mere 
scraps of paper. For that reason we believe that the fulfillment of 
joint agreements entered into in any given district should also be 
guaranteed by the national officers of the United Mine Workers of 
America, and that it should be the duty of the officers of the national 
organization, as well as that of the officers of the district, to see that 
all such agreements are carried out both in letter and in spirit — this 
particularly l^ecause we recognize that stn^-ikes in the coal industry are 
of serious moment to the whole people. 

The loss in the recent strike to the men, to the operators, and to 
the public can not be determined, as stoppage in production struck 
close to the roots of all industry and the welfare of the people. The 
loss to the men and to tlw public was an actual and complete loss; 
the loss to the operators may in part at least be passed on to the 
public. 

We understand thoroughly that the constructive work of the joint 
wage conference has been carried on for 30 years, and we assume that 
in the future as in the past most of the points of difference between 
the miners and ojx^rators will be adjusted by this body, but, we be- 
lieve that as the last resort some additional method should he devised 
under which strikes could not be callecl unless and until questions in 
controversy have been submitted to some form of tribunal, board, or 



36 EEPGRTS OF BITUMINOUS COAL COMMISSION. 

commission in case the parties to the controversy and the joint wage 
conference have finally failed to settle the questions at issue. Such 
tribunal, board, or commission should immediately undertake the in- 
vestigation of the questions involved and should publish within 60 
days its finding of facts, if not unanimous, then in separate reports; 
and pending such report, no general strike should be called; pro- 
vided, however, that if no report is published within the designated 
period, the retarding of the strike shall end. ^ 

The President's industrial conference has recommended the setting 
up of machinery which will, if established, be available to handle 
such questions, and the plan outlined by this conference provides for 
the filing of agreements. 

Therefore, our conclusion is : 

That if and when, during the life of the agreement to be drawn by 
the joint wage conference, and to be predicated upon this report, such 
boards and tribunals as may be recommended by the President's in- 
dustrial conference are set up, they should be employed in connection 
with the investigation of questions of controversy between miners 
and operators, and, in the event that no such machinery is created, 
that a board of inquiry and adjustment for the bituminous coal in- 
dustry should be created and maintained under the joint agree- 
inent — this board to consist of a chairman and tAvo other representa- 
tives of the public appointed by the President, two representatives of 
the mine workers selected by the mine workers, and two representa- 
tives of the mine owners selected by the mine owners, and that mat- 
ters of controversy between the bituminous coal miners and operators 
be submitted thereto, the expenses of such board to be borne by the 
operators and the miners equally. 

WAGES. 

We have decided to award as a substitute for the 14 per cent in- 
crease authorized by Dr. Garfield a wage increase that is consider- 
ably higher. In arriving at the present wage award, Ave were guided 
by the principle that every industry must support its workers in 
accordance with the American standard of living. 

With this principle in mind, we have considered the fact that the 
cost of living has advanced greatly from the preAvar level. Estimates 
of this advance in the evidence before the commission have ranged 
from the 80 per cent, submitted by the operators, through the last 
official report of the Bureau of Labor Statistics, which was 83 per 
cent for October, 1919, and the 86 per cent claimed by the miners in 
their brief with Avhich they stated they Avould be satisfied as a basis 
of the award, to an even higher figure provisionally estimated by 
the Bureau of Labor Statistics for December, 1919, on the basis of 
returns which are as yet incomplete. 



EEPORTS OF BITUMINOUS COAL COMMISSION. 37 

In iuldition. we have taken into consideration increases in wages M 
received by workers in other industries, as well as other factors herein 
set forth, including the consideration that every cent added to the 
tonnage rate on the annual production means an increase of five mil- 
lion dollars in the cost of ju-oducing coal, while each per cent of in- 
crease eijuals between seven and eight million dollars. 

We hope that there will be a decline in the cost of living in the 
iK»xt two years, but we realize that the miners have borne an increase 
above their advance of wages and consider the possible future decline 
in living costs as an offset for these losses. 

On the basis of $1,300,000,000 as the annual value of bituminous 
coal, the labor cost, which constitutes about 57 per cent of the total 
realization by the operators, is about $741,000,000. Twenty-seven per 
cent of tl:> amount is approximately $200,000,000, which is the addi- 
tional sum tliat will be paid to the miners, as the result of our 
award, above what they were receiving on October 31, 1919. For it 
must be borne in mind that our award is based on the status prior 
to the application of Dr. Garfield's l-l per cent. The 14 per cent itself 
involved a cost of over $104,000,000 to Avhich our award adds ap- 
proximately another $96,000,000. 

Wage advances granted ^o miners in the central competitive dis- 
trict between 1913 and October 31. 1919, average 43 per cent for 
tonnage workers and 70 per cent for day men. The derivation of 
these percentages is shown in detail in the table below. 

This table gives the coal tonnage of each of the four States 
constituting the central competitive field, and the percentage that 
the tonnage of each State is of the total. The table further shows, 
for machine workers, pick miners, and day men separately, the 
rates in 1913, the rates in 1919. and the percentage of increase in 
rates between these two dates. In arriving at the average increase 
for the four States, the increase for each is averaged, but in com- 
puting this average the States are weighted in proportion to their 
tonnage. For instance. Illinois produces nearly twice as much coal 
as Ohio: therefore, nearly twice as many tons of coal are paid for 
at the Illinois rate as at the Ohio rate, and in computing the average 
for the district, Illinois rates are given about twice as much weight 
as Ohio rates. The weights used for the four States are as follows: 

western Pennsylvania 39.8 

Ohio 22.2 

Indiana 14. 5 

Illinois 43. 5 

As the result of this calculation, it has been determined that the 
average rate for machine work in 1913 was 48.56 cents and in 1919, 
before the application of the 14 ];er cent, 72.03 cents, while the 
average rate for pick mining v^as 63.19 cents in 1913 and 85.53 



38 



EEPOETS OF BITUMINOUS COAT. COMMISSION, 



cents in 1919. In averaging the rates for pick and machine mining 
a further weighting was necessary. Of the total coal produced in 
the central competitive field 66 per cent is mined by machines, and 
34 per cent by hand ; therefore, the machine-mining rate was given 
a weight of 66 and the pick-mining rate a weight of 34, resulting 
in an average rate for tonnage workers, pick and machine, in 1913 
of 53.53 cents and in 1919 of 76.62 cents. The increase between 
these two dates for tonnage workers was thus 23.09 cents, or 43.1 
])er cent, while for day men it was 76.1 per cent. 

Central competitive p.eld. 



state. 


Per cent 

of 
tonnage. 


Rates, 
1913. 


Rates, 
1919. 


Per cent 
increase 
over 1913. 


MACHINE. 

WestGrn PGnnsylvaDia 


19.8 
22.2 
U.5 
43.5 


44. 61 
47.00 
49.00 
51.00 


70.00 
70.00 
72.00 
74.00 


56 9 


Ohio. 


48.9 


Indiana 


46. 9 


Tllino^s 


45.1 






Total 


100.0 


48.56 


72.03 


48. 3 






PICK. 


19.8 
22.2 
14.5 
43.5 


64. 64 
07.60 
61.00 
01.00 


87.04 
87.64 
84.00 
84.00 


35.6 


Ohio 


29.6 




37.7 


Illinois 


37.7 






Total 


100.0 


63.19 


85.53 


35.4 










53.53 


76.62 


43.1 








DAY MEN. 


19.8 
22.2 
14.5 
43.5 


2.84 
2.84 
2.84 
2.84 


5.00 

f.OO 
•■ K) 
•5.00 


76.1 


Ohio .... 


76 1 




76.1 


Illinois 


76.1 






Total 


100.0 


2.84 


5.00 


76.1 







ToQnageimnillions: Western Pennsylvania, 41; Ohio, 46; Indiana, 30; Illinois, 90; total, 207. 

J The average w^age advance awarded by us amounts to an increase 
lover rates prevailing before October 31, 1919, of 27 per cent. 

We direct that this increase be apportioned between the dif- 
ferent groups of workers and classes of work along the following 
lines : That tonnage rates, pick and machine, be increased by 24 cents ; 
that rates for all yardage, dead work, narrow work, and room turn- 
ing be advanced 20 per cent ; and that the compensation of day men 
also be advanced 20 per cent. All these advances to apply to the rates 
prevailing on October 31, 1919. 

On the basis of this adjustment tonnage workers wdll receive an 
average increase over 1919 of 31 per cent, while day men whose wages 
were advanced disproportionately under tha Washington agreement 
will receive an average increase of 20 per cent. It will be noted that 
the increase to the day men of 20 per cent amounts to a total increase 
since 1913 of 111 per cent. This figure is much in excess of the 



REPORTS OF BITUMINOUS COAL COMMISSION. r39 

liig-hest estimates of the advtince in liviiia- costs. It should be imder- 
stood that at the time the advaiue was given to the mine workers 
under date of October G, liU7, the advance given to the day hibor 
was at a rate considcraJbly in excess of tlie advance iii\en to the 
tonnaire workers. In fixing tliis difference one of the principal 
factors considered was tJie claim that day labor had prior thereto not 
been paid at a rate proportionate to that received by tonnage workers. 
We. therefore, considered that a part of the advance allowed 
day hilK)r in 1017 should not be considered in computing advances 
in wages based on inci'eased living costs. It has been difficult to 
determine just what part of the excess advance to day labor in li>17 
was due to the inequality as between tonnage and day workers and 
what part was due to efforts to induce this type of men to remain 
in the industry at a time when the war emergency was offering 
higher inducements in other industries. We feel, however, that, in 
iillowing the day men an advance which brings their total increase 
since 101:3 to 111 per cent, as against 88 per cent for tannage woi'kers, 
the method we have used is fair. 

AVhether all or any part of this amount will bo passed on by the 
operators to the public de[>ends on competitive conditions, but we 
estimate that the carrying out of other provisions of our findings will 
save the general public more than the cost of the additional wages. 

It is to be expected that when all Government regulations are with- 
dra^vn and a competitive market for coal is reestablished, the o^er- 
ex[)ansion of the industry will not permit the operators to add to the 
price of coal all the increased compensation granted to the miners. 

A tal)le is shown below based on the returns made by coal operators 
to the Bureau of Internal Revenue for the year 1018. In this table 
are included returns from 1.551 operators, representing about one- 
third of the coal tonnage produced in 1018. We ha^■e the assurance 
of the United States Geological Survey that the relative figures 
would not Ije greatly different if all the operators were included in the 
returns. Of the 1,551 companies 337, or 22 per cent, reported net 
lo sses in 1918, and 1G8 companies, or ll,_per cent, reported net in- 
comes of less than 5 per cent on invested capital. Two charts illus- 
trating this table are also presented. 

It is to be expected that companies which were not able to ojierate 
profital)ly in 1018. when the demand for coal was unliuiited, will be 
unable to remain in business in normal times, and that nuany of tiie 
comi^anies making net returns of only 5 per cent during that banner 
year will also decide to discontinue operations under competitive 
conditions. 

The two groups of companies reporting net losses and incomes of 
less than 5 per cent constitute about one-third of those for which 
returns are available, but represent only about one-seventh of the 



40 EEPORTS OF BITUMINOUS COAL COMMISSIOIT. 

total invested capital and about one-ninth of the total tonnage. It is 
believed that the Nation's coal requirements can ordinarily be met 
by the operation of those collieries alone which have advantages re- 
sulting in lov\?er production costs and consequent larger returns on in- 
vested capital. 

The figures show that 36 per cent of the operators represented, 
having about 62 per cent of the total invested capital and producing 
about 48 per cent of the total tonnage, made net incomes of between 
5 and 25 per cent on their investment, while other companies, still 
more fortunately situated, made even higher returns. The com- 
panies, however, that showed net incomes of over 25 per cent repre- 
sent in the aggregate less than one-fourth of the total investment and 
tw^o-fifths of the tonnage, while the companies making returns of 100 
per cent or more represent a total investment of only about $i,000,000 
and a total tonnage of about six millions. 

The average returns of all the reporting companies w^ere 18^86 per 
cent on the investment before payment of the income and excess 
profits taxes and 9.72 per cent after deducting the taxes. 

The companies reporting very high rates of return upon investment 
are all small concerns with investments of only a feAv thousand dol- 
lars, whose net income represents to a large extent the earnings of the 
owners for their own labor and management. 



KEPORTS OF BITUMINOUS COAL COMMISSION. 



41 



^c 



5 o 



-^ 









'- t i ? ■ - u. "^ > 

?. r = > ctr c 



c^^S. 












X 



^• 



s. CO 



.5 ^^ 









*^ h b >* 
5 5 >• -7 



c '" -.^ c 



1i| 



N 



C 






-2 






rf CN. t- cc — o « .c CO 10 c ^r -^ i?5 DC '^ 

cm" cm cc c~ ?f >c t-'ff tc"! --■" rc^cT oc" T-'cTi '•' 
rrCMTTt-TCiodaiafoirccs-ir.-..-^-^ 

®"2'cCS 15 '^ s t5 z: •^'^" 






i-H^ — o>c><cO(CocoeN< 



r~ t^ Tj- -f I yp I 

s: S v^. => S 



Oc«; 05 o -M 



^ — oc — > ;c o; 
00:25 = -:; 
e cr. rf c «2 c 



1 ^ --1 CM 



r-'CiCrCrCC'^CMOCl^C^'^TJ'COCJ 

c>J t-^ -^ «c fc t- ic re oc 'X o: oc «c ■«»> 'C c> 



J€8gfS 



:gl^ 



cr ;/: .c c; — cc I 
•r- I - - — 
CM I- 

•V* I --' cc !C c^ t^ CJ" t -" cc re" oc" t - ; 
>— CiccMoftctccici-c-rcc- 
oc— utcccs— c^c«:o^:cM. 

ic" oc" oc" tc" e>»" ic""* n r-" -^" 



t^ t^ — rj If: ce -3; CM — re cc o 't t~ X oc 

;c t^ tc ti «c >o c oc X « I- c cc C5 •* •.■: 

— iC t^ oc — C; I- 1.-: CM rf I~. IC — I - o o 



:»;.— ■<roc^e«:cMOCI-CMI^c;X;c•-C^- 
a!— ceoic;— cccMr^^cicoccer-oSo 
i«t^cvxe:c^ocict~o:->9<CM 

CM"-0'~-<I-'"c«5t~"t-."ic'|v:"cM" 



CMCr. ■-r2;0;;j-^CM— .-I!£CCi-~«CC5 

C-. T-icCcex-rXTroCjccMretD-f-^ 

■<r Cx a Cs 4.-. CC rr r-T C5 l.- X TS- 05 c~s >.- o 

— ""c'tt — "^'o: c"— 'crT-^'x'^'^"-^"— "eJ" 

••I-XtCC- OTCl-^ — l-iCCM — C5iC 

cr u; I- X T- ■* — ic t- ^ CM 

^" ce* ce" cm" cr<c" ic"fo" cm" 



1 C c^ >.-;—• re 



.— — Oi^tc t^ CMI-OI-XcerOCMi 

oc ■^ »c ce c r- c: i.e rt -» 1- ce ^ 

•♦(C^cxcetCkO-q-CMi-i 



i~ r: X c-5 ^ rr X 65 t- rf ce c CM 

I ~ o" x" ic" tC tt" CM cc" c" >o" ?c" 5c" -->" Ci x" lO" 
c — o: CMajxcecerece*>?:icceoecM 
xxi^o;oc — CMceo»i-cMi-co r-.,-. 



Tryri.ececr--cM-^cr-. c;o — t~CM-r--^ 
x-^-^cec:;CMiecMreo — ^021 — r -» 

C^i 05 ?C C-. ex X — C -^ '^I -.£ iC O I - CM X 

o " X* — ' en" •^" — «' c-j" x' --iT I -" x" •»»• t>-" ^" re" ^ 
cescxx-^— :— ce— ccxcMMi-ieo.-i 
cr. X X c CM X <c CM c-i «; "7 Tt< ,-( 

.— "ce*-5'";i i-"cM •^;c'i'e"«"co 
rT-t^O:t--rrCMCeeM'-> 



•<rxx«2cececc — 'OCMQCCO 
tcxcet^C'^o-icfcOirroci-ocroo 
■v5i.re'r--^COi'^ — XOCiOi-c^Cce 



I ^" irf o ;c" x" 1 -"aTiff • 
X 1^ I/: -^ <r. I - ■«• -H 



CM c- 1 IC ?>) M 

X X c «c T X 1- i/T -^ cr. I - ■«• • 
u:cc5c'~cro-. — cM".eccM' 

f — " — " cT «:' — ' 1 -' ■«?•" ■£ cm' c-f 



• lO « M^ ^ — "-^ 



c o> O X 
■<»< 1.: 05 .- 
fe ce ct CM 



ce CM CM -- c -r — 
I - -> re CM X c re 

X c '£ ce >- «c ~> 

x"cr-««"cM"i-"M" 

cc CMre CO -r 

■»»• — O tC CM o 

Tr"ic"ce"-H"— ■ — " 



X c;3 ^e c p -r 
X ce Si 1 - X -4 



C i 



'--: t c; "^ 

- 2 V. '>) 

. ^ S c 



-0- 
E a 

£0 

— © 

.si 






T c •» C-- c. 



c c 



S-. cr. 
2 2 






•- C ./; 



ccccc — — •^ — 



C C - ^ r:. 



S' — ^ .- ^ 






- C3 
I 



, „ c c c 



K« 



^.!:'' 
t:-. 



42 



REPORTS OE BITUMINOUS COAL COMMISSION. 



INVESTED CAPITAL OF 155T COAL COIvfPANSES 

BY RATES OF 

NET INCOME OR LOSS, 1913 




PERCENT 
LOSS 



INVESTED 
CAPITAL 



25 20 15 10 5. O 

AND TO TO TO TO TO 

over! 25 120 1 15 1 10 I 5 
LOSSES 



O I 5 ho] 15|20|25l3O|40.r50 75)100 150|200|300|400|50O PER'CENT 

TO I TO TO I TO J TO I TO 1 TO TO TO I TO TO TO TO TO TO AND Bir-r iWrOMt 

5 |loll5|2ol25l3O|4Ol5Ol75|l00!l50|200|300|400|500|0VER on 

NET INCOMES 'liYii^lP 



KEPOBTS OF BlTl'MliS^OUS <JOAL COMMlS;SiON. 



43 



TONNAGE OF !551 COAL COMPANIES 

BY RATES OF 

NET INCOME OR LOSS, 1918 



H0USAJ/3S 
OF 
TONS 



TONNAGE 

WITH 

LOSSES 



TOiNNAGE 

WITH 

NET INCOMES 



TONS 



29.000 

28.000 

2 7.000 

2 GOO 

25.000 

2 4.000 

2 3X>00 

2 2000 

21.000 

20.000 

19.000 

1B.OOO 

17.000 

to.OOO 

15^00 

14 COO 

13 000 

12.000 

ll.OOO 

10.OO0 

9000 

8.000 

7.000 

6.000 

5.0 

4.000 

3.000 

2.00 

IJOOO 



n 






m 



P 






29.000 

2 8.000 

27.000 

26,000 

25.000 

2 4.000 

23.000 

22.000 

21.000 

20.0OO 

19.000 

18.000 

1 7.000 

16.000 

15.000 

14.000 

13.000 

1 2.000 

ll.OOO 

lO.OOO 

9,000 

8.000 

7.000 

6.000 

5.000 

4,OCO 

3.000 

2,000 

l.OOO 



PER CENT 25 20 15 ID I 5 | O 

LOSS *W0 TO TO I TO TO TO 

INVrST.D°''":"J§0^45jl0l5 
CAPITAL L.U&&t5> 



lOl 15 20^25 30,40 50 I 751 100 150 200 300 4001500 PER CENT 
._ J -_ _- .- — — -- TO toIand 

H4ooi5ooloyEa 



rO I TO 1 TO I TO j TO I TO J TO I TO I TO I TO j TO | TO Toi TO TO |aND NETINCOMC 

5 I lo! 15'20l25 3O'4O!5O'75ll00ll50'200lj0{>l400i 



NET INCOMES 



INVESTED 
CAPITAL 



44 REPORTS OF BITUMINOUS GOAL COMMISSION. 

^ We believe that the law of supply and demand will result in a 
competition for markets and will not permit the operators to shift 
all the Avage advance to the public. The bulk line, which during the 
war was placed by governmental authority high enough t6 stimulate 
maximum production, will move lower in response to economic forces 
when normal conditions are reestablished and the price will be pre- 
vented from rising beyond a point sufficient to assure the Nation of 
its coal requirements. This forecast is based on the assumption 
that no combination to maintain prices can be formed among the 
operators. Such a combination besides being illegal seems quite 
impracticable in view of the 7,000 companies involved located as 
they are in some 26 or 27 coal-producing States. 

We have evidence that the share of labor in the total price paid by 
the public for coal was greater in 1916 and in 1917 than in 1918 for 
most of the important producing districts. Hence the advance 
granted to labor by this commission will tend to reestablish the pre- 
war distribution of each dollar paid for coal as between capital and 
labor. 

The increase will thus in no way be a further step in the circular 
ladder of more wages — higher prices^increase in the cost of living — 
still more wages. Even if it were established that this sequence of 
events obtains throughout industry, including coal mining, yet the 
question would remain whether it is fair to single out one group of 
workers as the victims of an attempt to check the operation of the 
vicious circle. 

In the case of the coal industry conditions are such, as a result of 
overexpansion, that higher labor costs will tend to force the read- 
justment under which the national needs will be met from more 
economically operated properties. This readjustment will be to the 
advantage of the coal-mining industry as a Avhole, and is urgently 
required in the interests of national economy under the present cir- 
cumstances. 

It is the true method of stabilizing the coal industry and providing 
for the more continuous employment of the capital and labor in- 
volved. 

The contention of the operators has been that the miners do not 
make full use of the opportunities for labor afforded them and that 
those of the miners who work at least three- fourths of the available 
time earn sufficient wages. In support of this contention the opera- 
tors submitted figures collected from a representative number of 
mines showing the number of men working each specified number of 
days, with their daily and monthly wages. 

We realize that a certain proportion of time is lost by the miners 
voluntarily. At the same time, we find that the figures submitted 
by the operators do not afford a measure of the amount of time so 



REPORTS OF BITUMINOUS COAL COMMISSION. 45 

lost by the miners, for the loason that these hguies make no aHow- 
ance for the turnover. In these tabuhitions every man ^vho worked 
at a mine at any time during: the month is counted on the same basis 
as one >vho Avas on the roll every day the mine Avas in operation, re- 
gardless of the fact that many miners may have obtained employ- 
ment on the last day of the month or been discharged at the end of 
the first day or moved to another mine in the middle of the month 
or died some time during the period. 

A man Avho Tvorked 13 days out of a possible '20 at 1 mine and 13 
at another would be counted in the<e figures as 2 men with an aggre- 
gate voluntary absenteeism of *2G~ days, or 50 per cent of the 52 
working-days for the 2 mines. 

A further defect in these figures is that the number of days that 
a mine is in operation is not necessarily the number of days that all 
the miners on the pay roll have an opportunity of employment. 
Parts of the mine may have been in bad condition or closed for 
repairs, or the coal in the Avorking places may not have been loaded 
out. making it impossible to mine more coal until the place is cleared, 
or the places may not have been undercut, making it impossible to 
load coal until this Avas done. Loss of time caused by Ihese condi- 
tions is properly chargeable to the industry rather than to the miners. 

But even after alloAvance has been made for all the factors entering 
into the problem a margin remains betAveen the number of days that 
the miners actually Avork and the number AA'hen they haA'e an oppor- 
tunity to work. A fair interpretation of this margin is that an 
irregular industry breeds irregular habits among the Avorkers. Whei7 
the men are not accustomed to gaing to Avork regularly every morn- 
ing the incentive for regularity becomes less potent and a certain 
amount of absenteeism inevitably results. This is the psychological 
factor of irregularity, and it may be expected that it Avill disappear 
in large measure as the industry becomes more stable. 

THE SIX-HOUR DAY AND THE FIVE-DAY WEEK. 

AVe have gone fully into tlie mine workers' demand for a six- 
hour day and a fiAC-day Aveek, equivalent to a reduction of Avorking 
hours from 48 to 30 per week. 

In considering this demand, Ave Avere influenced in arriving at 
our decision by the fact that steady Avork on the part of all Avorkers 
is urgently required by the entire Avorld during tlie period of re- 
construction and reorganization Avhen the enormous destruction and 
disorganization Avrought by the AVorld AVar in all countries and 
affecting all industries must l)e counteracted by unusual industry 
and per>everance. To make any restriction affecting the output 
Arvould Ije an economic crime. 



46 REPOKTS OF BITUMINOUS COAL GOMMiSSIOS". 

It is claimed by the miners on the basis of experience after pre- 
vious reductions of hours of labor and of the effects of reduction 
of hours in other countries, that curtailment of working time would 
not reduce the output in an^^thing like a corresponding proportion. 
It is our view that arguments based on the effects of a reduction 
from 10 to 8 hours can hardly apply to a reduction from 8 to 6 
hours, or from 8 to 7 hours. Production .in countries where there 
has been a reduction in hours is less than before the hours were 
reduced. We feel that our responsibility to the Nation will not 
permit us to make an award that would curtail appreciably the 
productivity of the workers in a basic industry. 

Each coal company endeavors to have enough men on its rolls to 
carry it over the peak of the rush season: the operators want coal 
mined while there is a demand, each company realizing that, if it is 
unable to satisfy its customers, they will turn to other producers and 
the sal^ will be permanently lost. A labor supply, sufficient for the 
needs of the rush season, is excessive during the rest of the year, part- 
time employment results, and the Nation will ultimately have to pay 
in its fuel bills the cost of maintaining this larger army of only par- 
tially employed workers. 

We are convinced that a reduction in hours of labor would only 
make a bad situation worse, that the miners' demand on this point 
is clearly uneconomic, and that to grant it would be detrimental to 
their own interests. 

Another result that would flow from a reduction in hours, with the 
wages that it is proposed should be paid, will be to increase the num- 
ber of men who will seek employment at the mines on account of the 
sh.orter hours and the full pay, and this, in turn, will result later in 
further demands for the shortening of hours in order to give employ- 
ment to the men who would thus be added to an industry that is 
already overmanned. We can not, in view of our responsibilities, 
agree to a demand that would lead to such disastrous results. At the 
same time, we hope to accomplish something in the direction of the 
stabilization of the industry by means of constructive proposals dis- 
cussed elsewhere in this report. 

While we are in full sympathy with the miners in their aspiration 
for a fuller life, we can not help but feel that eight hours a day is 
not too much to work under present circumstances. 

The contention that the extra hazardous nature of the mining 
industry makes it desirable to reduce the risks run by the miners 
by reducing the time during which they are exposed to this risk is 
inconsistent with the claim that the miners wish to work the same 
number of hours per year as they are working now, provided the 
l>ciu\s are more evenly distributed through the year, for if they work 
as many hours they will be exposed to the same visks. We also have 



REPORTS OF BITUMINOUS COAL COMMISSION. 47 

coiisiJereil the fact that contractual hours of hibor apply only to 
day workers, and that more than tU) per cent of the miners work on 
a tonnage basis. To reduce the numl)er of earninfy hours during 
the year, particularly when one of the chief complaints of the miners 
is that they do not have sufficient hours of work and consequently 
can not earn adequate wages, would clearly not l)o consistent with 
the connnission's conception of its dut}-. 

Therefore, our conclusion is that, under all the conditions, the 
ciiiht-hour day should be maintained. 

CAMPS AND HOUSING. 

We believe that generally there has been marked progress in the 
larger mining centers of the country toward improving living con- 
ditions and community life. Yet, on the other hand, in isolated 
mining camps where niiin^^ miners are employed this has not taken 
place. We wish to commend the mining companies that have recog- 
nized the advantages accruing through the establishment of better 
homes and snch social conditions as will enable the miner to acquire 
a home of his own. If there is to be full cooperation and a proper 
relation between employer and employee, it can only be brought 
about if the operator takes an enlightened and humane attitude. 

We therefore recommend to the operators that they endeavor to V 
plan their operations in such a way that this ideal may be realized, f 
uiving due consideration to the physical conditions involved. Where 
miners* homes ai'e owned by the operators and rented to the miners 
there is even greater need for wise foresight on the operator's part; 
and while it is felt that there has been considerable improvement in 
the type constructed in late years for miners* homes — and this is true 
whether they are owned by the mine workers or by the operators and 
rented to the miners — we also recognize that there are operations 
where the old type of construction still obtains and where the condi- 
tions are not satisfactory or sanitaiy. 

We believe the mine workers are entitled to homes of a modern 
type, with good sanitation, and that this is essential to maintain the 
proper standard of American living. AVe recognize that the opera- 
toi-s have in many instiinees been limited in the type of home they 
could construct, sometimes by the length of the expected life of the 
opeiation and at other times by the joint-agreement limitation on 
the rentals to be paid. We therefore recommend that when houses 
;ire to be constructed by oi)erators houses of a modern type, with 
LTo >d sanitation, shall be built, the type of house to \k' based on the 
probable life of the mine; that rentals shall be based on the actual 
invnsTment in houses and land: that the leturn should include no 
profit to the oj^erator; and that the rentals should be only sulHcient 



48 REPORTS OF BITTJMII^OUS COAL COMIMISSIOK. 

to maintain the structures in good condition, provide for the amorti- 
zation of the investment cost and proper insurance, and return not to 
exceed 6 per cent on the invested capital while such sum is invested. 
Where the expected life of the operation exceeds 25 years the 
period of amortization shall be 25 years, but in no other event shall 
the amortization period be less than the expected life of the property. 

INTEODUCTIO]^ OF LABOE-SAVING DEVICES AND MACHINERY. 

The United Mine Workers, through their president, have stated 
their position on the introduction of machinery and other mechani- 
cal devices that tend to increase production and efficiency in the 
mining industry. The statement fully accepts in principle the de- 
sirability of the introduction of such machinery and devices. 

The statistics before the commission show that 57 per cent of the 
country's total production of bituminous coal is machine mined. It 
is recognized by the commission that the introduction of machinery 
and devices can be prevented by the mine workers by failure to 
agree upon the rates, terms, and conditions under which the ma - 
chinery and devices are to be used. We recommend that the good 
offices of the miners' international organization be exercised. to main- 
tain the principle that has been so fully presented in behalf of the 
mine workers. 

Pending the joint district agreement between the miners and op- 
erators covering a fair schedule of rates for piecework or tonnage 
operation of any new device or machinery, the right of the operator 
to introduce and operate any such new device or machinery shall 
not be questioned, and his selection of such men as he may desire 
to conduct tests with or operate such device or machinery shall not 
be in any way interfered with or obstructed by the miners or their 
representatives, provided the wages offered are at least equal to the 
established scale rates for similar labor. 

The operator shall be privileged to pay in excess of the established 
scale rates of pay Avithout such excess pay being considered as estab- 
lishing a permanent condition for the operation of said device or 
machine. 

After the device or machine shall have passed the experimental 
stage and is in shape to be introduced as a regular component part of 
the production of coal, then for the purpose of determining a per- 
manent scale of rates (such rates. to continue until the joint scale con- 
ference above referred to fixes a scale) for operating such device or 
machine the mine workers may have a representative present for a 
reasonable time to witness its operation, after which a schedule of 
rates shall be determined by mutual agTeement, which scale shall be 
[ concluded Vv^ithin 60 days after a fair test has been made. 



REPORTS OF BITUMINOUS COAL COMMISSION. 49 

The te>t will di^clo^o the lab(M'-s;ninii' in the cost of iirodiioiniij 
coal, out of which hibor-savina' the mine worker shall receive the 
eijuivalent of the contract rate^ for the class of work displaced, pins 
a fair ])roportion of the labor-savinirs effected. 

In like manner new or nntried systems of niinini:-. for instaiu'e, 
lonir wall, retreatina- lone: wall, or the panel system, may be intro- 
duced by the oi^erator for the pui']^cse of conservation, increasinij^ 
production, the lessening of cost, or. in the interest of safety. Avithout 
liis riiiht to make such change being abridged: ]n-ovided, however, 
that for this class of Avork the mine woiker shall in the same manner 
receive the e(|ui\alent of the contract rates for the class of work dis- 
l)iaced, jilus a fair ju-oportion of the labor-savings etlected. 

DISCOUNTING EMPLOYEES' WAGES. 

The iiiine workers presented to tlie connnission statements showing 
that a serious evil exists in the industry in certain localities, where 
the operators exact discounts upon advances of pay made between 
pay days. 

AVe recommend that the making of advances be discouraged in 
every way: and if for an}' good reason an advance is asked and 
made, it shall be done without discount, either directly or indirectly. 

APPLICATION OF THE 14 PER CENT WAGE INCREASE. 

We believe that while in certain districts the ap])lication of the 
14 per cent has been made in such a manner that the miners have 
not received tlie equivalent of the 11 cents flat rate as applied in the 
central competitive field, yet, in view of the application made in 
this award of the rates, we feel that any injury done the miners 
who failed to receive the 11 cents between November 1 and April 1 
will be equalized under the application herein made of the new 
lates set up. 

POWDER. 

AVe are of the o])inion that there should be no attempt on the 
])art of the employer to profit by the handling of any explosives sold 
to his employees, and believe that the future policy should be that 
explosives be furnished the miner at cost, including the cost of han- 
dling, transportation, and insurance. 

PRICE OF HOUSE COAL TO THE EMPLOYEES AT THE MINE. 

It is our belief that the companies should not make any profit on 
the roal supplied to the miners. On the other hand, we feel that the 
miners do not expect coal at less than cost, a large part of which is 
their own wages, ancl that an increase in the price of coal commen- 



50 REPORTS or BITUMINOUS COAL COMMISSION. 

siirate with the increase in the miners' compensation will be clieer- 
fiilly met by the men. 

For the term of the contract, the price at which house coal shall 
be furnished the mine workers at the tippk shall be determined by 
adding to the price to the miners in effect on October 31, 1919, the 
average percentage allowed as an increase on the wage scale, to 
wit, 27 per cent. When coal is delivered to the miners' houses by the 
operator, the actual cost of delivery shall be added. 

CAR PUSKING. 

We find that pushing of cars, loaded or empty, by the mine 
workers is natural to the industry and is an integral part of the 
day's work. Through the negotiations of 30 years this work, where 
practiced, has been paid for in general in the tonnage rates. 

The principle of car pushing, we believe, is not the burning ques- 
tion, but rather the abuse that has grown up is the subject of the 
miners' demand for relief. We are unable to take a complete view 
of the car-pushing question, covering as it does, the industry in all 
mining fields. We believe, however, that the abolition of car push- 
ing would ruin financially several great coal-producing sections. 

We recognize the tendency to increase the size and the weight of 
cars and equipment, especially in the thick seams of coal, so that it 
becomes an abuse, and we feel that the complaint is not without 
foundation. We appreciate, however, the difficidty of fixing a defi- 
nite limit of weight on cars pushed because of the varying conditions 
in mining in the different fields and because of the highly com- 
petitive relations between the thick and thin seam producing dis- 
tricts. We, therefore, earnestly recommend to operators that the 
aslleviation of abuses in car pushing, where they exist, be the s^ibject 
of careful consideration by them in order that ameliorating prac- 
tices may be introduced. 

BLACKSMITHING. 

We are of the opinion that in some instances the miners have been 
charged excessive prices for blacksmithing, and we find that for the 
purpose of the new agreement the price charged the miners shall be 
on the basis of existing contracts ; provided, however, that the maxi- 
mum charge shall not exceed three-fourths of 1 per cent of the miners' 



■to 
aross earnins^s. 



SPECIAL CASES. 



The testimony before this commission having shown conclusively 
that there exist in certain sections of this country problems that should 
be given consideration outside of the province of this commission, we 



REPORTS OF BITUMINOUS CO.VI. COMMISSION. 51 

make special awards in reaanl to (he central competitive field, north- 
ern Illinois, As>nni])tion and Decatur, 111., and Washington; also spe- 
cial recommendations in regard to Kanawha. Paint Creek, and Cabin 
Creek, in West Viririnia, and in regard to Alabama, Tennessee, east- 
ern Kentucky, and ^far viand. 

(KN riJAL CO^irKTlTTVE HELD. 

The mine workers made a demand for changes in several differ- 
entials, such as the differential between machine and pick mining, 
thick and thin seam, and other forms of dilferentials. Inasmuch as 
the questions submitted are technical and complex in their nature, 
their determination may be expected to affect materially competitive 
relations as between operators, and the relative earnings as between 
mine workers. As the commission's time and staff* were limited, we 
believe that it would be manifestly unfair to undertake a determina- 
tion of these questions, since they will require months of careful study 
by experienced technical experts. We therefore provide for the setting 
up of a coimnission with a proper staff of technically trained men, to 
make a complete study of the questions involved, the award of sucli 
connnission to become part of the wage agreements in the districts 
affected, as hei*einafter provided. 

We also deem it desirable that said commission investigate the ad- 
visability of discontinuing the check-off system of collecting dues for 
the United Mine Workers of America. 

We therefore direct that a commission be selected by the scale com- 
mittees of miners and operators, respectively, in the central competi- 
tive field, which shall study the differentials hereinafter set forth as 
to working conditions, wage earnings, production costs, and competi- 
tive relations, as w ell as the check-off system of collecting dues for the 
United ^line Workers of America. 

The commission shall consider: 

1. The differential between pick and machine mining rates in In- 
diana. 

i^. The thick and thin vein differential in the Pittsburgh district. 

3. The seven-cent machine differential in Illinois. 

4. The differential in tonnage rates in southern Illinois. 

5. The discontinuance of the check-off system of collecting dues 
for the United Mine Workei*s of America. 

We furthermore recommend that this commission shall ])e com- 
posed of eight members, one mine worker and one operator from each 
district in the central competitive field; also that the expense of this 
commission shall be boj-ne by the mine woikers and operators af- 
fected, each paying one-half; and that the ommission so constituted 



52 EEPORTS OF BITUMINOUS COAL COMMISSIOIN'. 

shall make a report to the regular joint conference of the central 
competitive field, to be held at the expiration of the agreements based 
upon this award. 

NORTHERN ILLINOIS. 

We direct that the mine workers of district No. 12, Illinois, and 
the Illinois Coal Producers' Association, respectively, shall each 
select two members of a joint commission to study the situation in 
northern Illinois, Assumption, 111., and Decatur, 111., as to wage 
rates, earnings, working conditions, production costs, and competi- 
tive relations, w^hich commission shall report its findings to the joint 
conference of the Illinois mine workers and operators, following the 
expiration of the agreement for which this award constitutes a basis. 

The expenses of this commission shall be borne by the mine w^orkers 
and operators affected, each paying one-half. 

WASHINGTON. 

We direct that the United Mine Workers of District No. 10, Wash- 
ington, and the Washington Coal Producers' Association, respec- 
tively, shall each select two members of a commission and the four 
members so selected shall appoint an experienced mining engineer, 
who shall also be a member of the commission. This commission 
shall within 30 days from appointment investigate and report to the 
joint conference of mine workers and operators of the State of 
Washington the effect of the application of the awards herein set 
forth to the agreements and wage schedules in that State. In the 
meantime the awards herein shall not apply in AVashington. 

The expenses of this connnission shall be borne by the mine work- 
ers and operators affected, each paying one-half. 

KANAWHA, PAINT CREEK, AND CABIN CREEK, W. VA. 

The miners and operators, having agreed in joint conference to 
the establishment of a joint commission for the purpose of making 
an investigation within the Kanawha, Paint Creek, and Cabin Creek 
fields for the possible correction of inequalities and to bring about a 
more uniform condition, have not had an opportunity to present 
• their report to the joint conference. As both the operators and the 
miners have asked that the findings of this commission be written 
into the new joint agreement, wdiich is to be predicated on this report, 
we recommend that the mine workers and operators compose their 
differences in harmony with the report of the joint commission re- 
ferred to, and that the findings of that commission be written into 
the agreement. 



REPORTS OF BITUMINOUS COAL COMMISSION. 53 

ALABAMA. TKNNKSSKE. KASTEKN KENTlcK Y, AND iMAKYLAND. 

Tlio roproeiUativos of the iiiinors from Al;\i>anra, Tennessee, 
eastern Kentucky, and ^laryland liled briefs eitivia' the ^vages and 
conditions of enii)lovnient. but. as the records show, none of the 
operators from tliese districts appeared before the commission, but 
tliev liled letters Avith the commission to the effect that they have 
no joint rehitions with the mine workers of their districts. 

In each of these districts durin^r the war certain wage increases 
were a(hipted and put into eli'ect by the Ignited States Fuel Adminis- 
tration and tribunals were set up for the adjustment of the usual 
co'uplaints common to mining:. These tribu.nals included a perma- 
nent umpire in each district, and in order that justice may be done to 
all and th.e mine workers be given the right to enjoy the corresjwnd- 
ing advantages that the award given the mine workers elsewhere 
may rellect we would reconnnend that the operators arrange to meet 
with representatives of the miners of these districts and to put into 
cli'ect the award herein, to the end that industrial peace and tran- 
quillity may prevail. 

THE AWARD. 

We hereby award that all the terms, conditions, and provisions, 
mining rates, and Avage schedules in effect on October 31, 1919, in 
what is known as the Washington agreement, dated October 6, 1917, 
and the agreements preceding the Washington agreement, to which 
the AVashington agreement is supplemental and upon wdiich it is 
predicated, applying to the central competitive field and the out- 
lying districts, shall be written into the agreement for which thes3 
findings constitute a basis, except as the same may be modified by 
the awards and recommendations hereinafter set forth. 

As a modification of the terms of the agreements above recited, we 
award : 

A. That the following specific awards shall constitute the basis 
upon which wage agi'eements in all districts shall be predicated. 
They are not subject to negotiations, but shall be Avritten into all 
agreements and schedules of wages. 

B. That the 14 per cent average increase in wages fixed by the 
T'nited States Fuel Administration shall be eliminated on March 
31, 1920, and in lieu thereof the wage scale of the Washington agree- 
ment, referred to, shall be increased as set forth herein. 

C. That the agreement for which this award constitutes a basis 
shall take effect April 1, 1920, and continue in effect up to and 
including March 31, 1922. 

D. That the mining prices for mining mine-run coal, pick ^tiuI 
machine, shall be advanced 24 cents per ton. 



54 EEPOETS OF BITUMINOUS COAL COMMISSIOI^. 

E. That in the block-coal field of Indiana, and in other localities 
that are still on the screened-coal base, the usual methods of applying 
the tonnage rates shall continue. This also has its apx)lication to 
districts that have a joint understanding in applying wage increases 
to low coal. 

F. That all day labor and monthly men (the advance to monthly 
men to be based on an average of the usual number of da5's he is 
required to work in a month), except trappers and other boys, be 
advanced $1 per day. Trappers and boys receiving less than men's 
wages to be advanced 53 cents per day. 

G. That all yardage, dead work, and room turning be advanced 
20 per cent: Provided^ lioioever. That nothing shall prevent the rep- 
resentatives of the miners and operators in any district, in joint 
conference, from taking the flat equivalent of the 20 per cent and 
applying it to j^ardage, dead work, and room turning, if by so doing 
they will make for uniformity and maintain the differentials. Fail- 
ing, however, to agree to such application, then the 20 per cent shall. 
be applied on the existing rates, effective October 31, 1919. 

H. That the decisions, which hereinbefore appear in the body of 
this report and Avhich are hereinafter summarized, are to be in- 
corporated, according to the letter and spirit of the said decisions, 
in the agreements to be drawn between the miners and operators; 
and that the said decisions shall constitute the basis upon which the 
jvage agreements in all districts shall be predicated. They are not 
subject to negotiations, but shall be written into all agreements and 
schedules of wages. However, the several joint-scale committees 
may, by mutual agreement, make such proper adjustment of local 
conditions as may come within the terms and scope of this award, 
and of the Washington agreement, dated October 6, 1917, and of 
the agreements preceding the Washington agreement, to which the 
Washington agreement is supplemental, as more fully set forth in 
clause No. 6 of the joint agreement of the central competitive field, 
dated March 9, 1916. These decisions are summarized as follows : 

I 1. That the fulfillment of the agreement to be entered into 
shall be guaranteed by the international union, and the fulfill- 
ment of joint agreements entered into in any district shall also 
be guaranteed by the officers of the international organization, 
as well as by the officers of the district, and it shall be their duty 
^ to see that all such agreements are carried out both in the letter 
and in the spirit. 

2. That the eight-hour day in effect on October 31, 1919, in 
what is Ivnown as the Washington agreement, dated October 6, 
1917, and the agreements preceding the Washing-ton agreement, 
to which the Washington agreement is supplemental, applying in 
the central competitive field and outlying districts, shall be 



EEPORTS OF BITUMINOUS COAL COMMISSION. bO 

Avritteii into the ii<2,ieemciit> for which theso iindiiigs constitute a 
bnsis. 

o. That tlio piisliino- of cais, loatled or empty, by the mine 
>vorlvers is natural to the industry and is an intec^ral part of the 
day's work, and that through the neirotiations of ?>0 years this 
work, whore practiced, lia.s been paid for in oeneral in the ton- 
na<:!:e rates. 

4. That pendino: the joint district ai>reement between the 
miners and operators covering a fair schedule of rates for piece- 
work or tonnage operation of any new device or machinery, the 
riglit of tile operator to introduce and operate any such new 
device or machinery sliall not be questioned, and his selection of 
such men as he may desire to conduct tests with or operate such 
device or machinery shall not be in any way interfered with or 
obstructed by the miners or their representatives, provided the 
wages oft'ered are at least equal to the established scale rates for 
similar labor. 

The operator shall be privileged to pay in excess of the estab- 
lished scale rates of pay without such excess pay being consid- 
ered as establisliing a permanent condition for the operation of 
said device or machine. 

After the device or machine shall have passed the experimental 
stage and is in shape to be introduced as a regular component 
part of the production of coal, then .for the purpose of deter- 
mining a permanent scale of rates (such rates to continue until 
the joint scale conference above referred to fixes a scale) for 
operating such device or machine the mine workers may have a 
representative present for a reasonable time to witness its opera- 
tion, after which a schedule of rates shall be determined In- 
mutual agreement, which scale shall be concluded within 60 days 
after a fair test has been made. 

The test will disclose the labor-saving in the cost of producing 
coal, out of which labor-saving the mine worker shall receive 
the equivalent of the contract rates for the class of work dis- 
placed, plus a fair proportion of the labor-saving effected. 

In like manner new or untired systems of mining; for in- 
stance, long wall, retreating long wall, or the panel system may 
be intro<:luced by the operator for the purpose of conservation, 
increasing production, the lessening of cost, or in the interest 
of safet}' without his right to make such change being abridged: 
Pror'KhcJ, horrever. That for this class of work the mine workei- 
shall in the same manner receive the equivalent of the contract 
rates for the ckss of work displaced, plus a fair proportion of 
the lal)or-saving eflPected. 

."). That a commission ]>e selected l)y the scale committee of 
minei-s and operatoi-s in the central competitive field, respec- 
tively, which shall study the dilTerentials hereinafter set forth 
as to working conditions, wage earnings, pro<]uction costs, and 
competitive relations, as well as the check-off system of col- 
lecting dues for the Ignited Mine AVorkers of America, the award 
of such comission to become part of tlic wage agreements in the 
districts affected. 



56 REPORTS OF BITUMINOUS COAL COMMISSION. . 

The commission shall consider: 

a. The differential between pick and machine mining 
rates in Indiana. 

Ik The thick and thin vein differential in the Pittsburgh 
district. 

c. The seven-cent machine differential in Illinois. 

d. The differential in tonnage rates in southern Illinois. 

e. The discontinuance of the check-off system of collect- 
ing dues for the United Mine Workers of America. 

We furthermore recommend that this commission shall be 
composed of eight members, one mine worker and one operator 
from eich district in the central competitive field ; also that the 
expense of this commission shall be borne by the mine workers 
and operators affected, each paying one-half ; and that the com- 
mission so constituted shall make a report to the regular joint 
conference of the central competitive field, to be held at the ex- 
piration of the agreements based upon this award. 

6. That if and when, during tlie life of the agreement to be 
drawn by the joint wage conference (which agreement is to be 
predicated upon this report), such boards and tribunals as 
recommended by the President's industrial conference are set 
up, they shall be employed in connection with the investigation 
of questions of controversy between miners and operators: Pro- 
vulecl^ hoioever^ That in the event that no such machinery is 
created, that a board of inquiry and adjustment for the bi- 
tuminous coal industry shall be created and maintained under 
the said joint agreement — this board to consist of a chairman 
and two other representatives appointed by the President; two 
representatives of the mine workers selected by the mine 
workers ; and two representatives of the mine operators selected 
by the mine operators— and that matters in controversy between 
the bituminous coal miners and operators be submitted thereto; 
that the expense of such board be borne by the mine workers 
and operators equally; and that such tribunal, board, or com- 
mission shall immediately undertake the investigation of the 
questions in controversy, and shall publish within 60 days its 
findings of fact, and if not unanimous, then in separate reports, 
and that pending such report no general strike shall be called: 
Provided^ however^ That if no report is published within the 
designated period, then a retarding of the strike shall end. 

7. That the price at which house coal shall be furnished the 
mine workers at the tipple shall be determined by adding to the 
price in effect on October 31, 1919, the average percentage 
allowed as an increase on the wage scale, to wit, 27 per cent, and 
that when the coal is delivered to the miners' houses by the 
operator the actual cost of delivery shall be added. 

8. That for the purpose of the new agreement the prices 
charged the miners for blacksmithing shall be on the basis of 
existing contracts; providing, however, that the maximum 
charge shall not exceed three- fourths of 1 per cent of the miners' 
gross earnings. 

9. That explosives shall be furnished the miners at cost, which 
is to include handling, transportation, and insurance. 



REPOKTS OF BITUMI^'OUS COAL COMMISSION. OT 

10. That since the minors and operators have agreed in joint 
conference to the establishment of a joint connnission for the 
pur}H)se of makinir an investigation within the Kanawlia, Paint 
Creek, and Cabin Creek Hehl^ for tlie possible correction of in- 
e(|ualities in order to brinir about a more uniform condition, but 
have had no opportunity to ]n-esent their rej^ort to the joint 
conference, and as both the operators and miners have asked 
that the findings of this connnission be written into the new joint 
agreement, which is to be predicated on this report, we direct 
that the mine workers and operators compose their differences 
in harmony with the rei)ort of the joint commission referred to, 
and that the findings of that connnission be written into the 
agreement. 

11. That the mine workers of district Xo. 1*2, Illinois, and 
the Illinois Coal Producers* Association, respectively, shall each 
select two members of a joint commission to study the situation 
in northern Illinois. Assumption, 111., and Decatur, 111., as to 
wage earnings, working conditions, production costs, and com- 
)H^titive relations, which commission shall report its findings to 
the next regular joint conference of the Illinois mine workers 
and (operators following the expiration of the agreement for 
which this award constitutes a basis. The expense of this com- 
mission shall be borne by the mine workers and operators 
affected, each paying one-half. 

l->. That the United ]Mine Workers of District Xo. 10, Wash- 
ington, and the Washington Coal Producers' Association, respec- 
tively, shall each select two members of a commission and the 
four members so selected shall appoint an experienced mining 
engineer, who shall also be a member of the connnission. This 
commission shall, within 30 days from appointment, investigate 
and report to the joint conference of mine workers and operators 
of the State of AVashingion. the effect of the application of the 
awards herein set forth to the agieements and wage schedules in 
that State. In the meantime, the awards herein shall not apply 
in Washington. The ex})enses of this commission shall be borne 
bv the mine workers a]id operators affected, each paving one- 
half. 

I, That the above summary shall in no way modify the decisions 
and awards set out in this repoit. 

RECOMMENDATIONS. 

In addition to the above summary of the awards the following 
j)ecific recommendations are made: 

(1) That an executive order be issued instructing all Fe(leral 
dej^artments and other Federal agencies to purchase, transport, 
and store at the point of consumption, where such action may be 
])racticable. an estimated three months' winter supply of bitu- 
minous coal before July 1 of each year. 

(2) That the Council of Xational Defense assume tlio duty 
of obtaining the support of tlie general public, paiticularly 



58 EEPORTS OF BITUMINOUS COAL COMMISSIO:^'. 

the large consumers, in the stabilization of the coal industry 
through the purchase, transportation, and storage at the point 
of ultimate consumption of its winter supply of coal — this to 
be done during the spring and summer months. 

(3) That an executive memorandum be issued to the Inter- 
state Commerce Commission transmitting to that body a copy 
of this report with the findings, awards, and recommendations, 
to the end that th3 Interstate Commerce Commission may aid 
in the solution of the problems herein outlined, and in the hope 
that the Interstate Commerce Commission will give particular 
attention to the questions of seasonal freight rates, car supply, 
and car distribution, as vrell as the problem of railway coal 
purchase for storage. 

(4) That executive authority be issued permitting the trans- 
mission to the governors of the various States, to county and 
municipal authorities, and to the various State railway and 
public utility commissions copies of this report and of the 
specific recommendations made therein; and that the State 
railway and public utility commissions make use of their in- 
fluence with the various public utility corporations looking 
toward the early purchase and storage of coal by these corpo- 
rations reflecting, if necessary, the excess cost of such storage 
in authorized rates, and also to the end that instructions may 
issue from State, county, and municipal authorities directing 
the purchase and storage of three months' supply of coal on 
or before July 1, of each year, by and for the use of the States, 
counties, and municipalities, particularly on joublic works and 
in public buildings. 

(5) That the Interstate Commerce Com.mission consider tlie 
possible effect of a graduated seasonal freight rate that is lowest 
in the spring and a monthly graduated increase in rates until 
the late fall. 

(6) That copies of this report with its findings, awards, and 
recommendations be transmitted to the carriers to the end tliat 
they may be enabled to cooperate, particularly in regard to car 
construction and distribution, coal storage, and the elimination 
of the practice of commandeering. 

(7) That a copy of this report be transmitted to the Federal 
Keserve Board to the end that Federal reserve banks be asked 
to favor as eligible for rediscount paper drawn against coal in 
storage. 

(8) That the Interstate Commerce Commission, State rail- 
road and public utility commissions, within their jurisdictions, 
issue, where lawful, rules controlling car distribution among 
mines, to the end that no particular mine or mines may be per- 
mitted to obtain through a practice of car assignment and guar- 
antees, preferential car service. 

(9) That carriers, and, if necessary, the Interstate Commerce 
Commission and the various State railway commissions, within 
their jurisdictions, issue the instructions necessary to abolish 
the practice whereby purchasing agents of carriers use the com- 



REPORTS OF BITUMINOUS COM. COMMISSION. 59 

pany's control o\ei" car su[)ply to foi'ce down llio price of rail- 
way fuel. 

(10) That the operators in s^ui^plyino- their (jiiota of fuel to 
the railroads avoid, except in enieraencies, the use for that pur- 
pose of coal whos(^> properties nialce it more \aluahle for other 
uses. 

(11) That all data rehitin^c: to the minin<r< distrihution. and 
consumption of bituminous coal be coordinated and correlated 
periculically and regularly by some c«ne Federal agency such as 
the Interdepartmental "Board of the Council of National De- 
fen-^e, in order that it may be available for any committee or 
connnission hereafter called upon to investigate controversies 
between operators and minei's in the bituminous coal industry. 

( IlM That operators endeavor to plan their operations in siich 
a way that improvement may be made in camps and housing 
adequate for the maintenance of the American standard of 
living, giving due consideration to the pln'sical conditions in- 
volved, and reconnnend that Avhen houses are to be constructed 
by operators that they shall be of modern type, based upon the 
probable life of the mine, with good sanitation ; that rentals 
shall be based on the actual investment in houses and land; that 
the return should include no profit to the operators; that rentals 
be only sufficient to maintain the structures in good condition, 
provide for the amortization of the investment cost and proper 
insurance, and return not to exceed per cent on the invested 
capital while such sum is invested, and that where the expected 
life of the operation exceeds 25 years, the period of amortization 
should be '2o years, but in no other event should the amortization 
period be less than the expected life of the propert3\ 

(13) We recommend that the good offices of the miners" in- 
ternational organization be exercised to maintain the principle 
that has lieen stated by the mine workers who appeared before 
us covering their approval of the introduction of labor-saving 
devices and machinery. 

(14) That the making of advances on miners* pay be dis- 
couraged in every way, and, if for any good reason an ad- 
vance is asked and made, it shall be made without discount, 
either directly or indirectly. 

(15) That the operators give careful consideration to the 
alleviation of abuses in car pushing where they exist, in order 
that ameliorating practices may be introduced. 

(16) That representatives of the miners and operators in 
Alabama, Tennessee, eastern Kentucky, and Mar3'land arrange 
to put into effect the award herein set out, to the end that in- 
dustrial peace and tiaufjuillity may prevail. 

(IT) That your commission be discharged from its duties 
upon the signing of the agreement .specified, and that all files, 
records, and property of this commission be then transferred 
to the custody of the Council of National Defense, whose dis- 
bursing officer has acted as disbursing officer of this commission, 
and any and all obligations incurred by it be liquidated by the 



60 EEPORTS OF BITUMINOUS COAL COMMISSION. 

said council from the funds appropriated by Congress for the 
expenses of this commission, upon vouchers approved by the 
Director of the Council of National Defense, and, therefore, that 
the unexpended balance of the appropriation for this commis- 
sion be transferred to the said council, and that on June 30, 
1920, the files and records of this commission be consolidated 
with the files of the Fuel Administration. 

In submitting this report particular attention is called to the fact 
that herein every effort has been made for the protection of the 
])ublic, not only for the period under which this protection can be 
guaranteed by the Executive under the powers granted him by 
the Lever Act, but it has been our effort to go into the underlying 
causes for high costs and to offer some remedy therefor — this, in 
order that in the future, when the Government relaxes its control 
over prices, there may be a continuing force at work in the public 
interest.' 

We believe it is obvious that unless some changes can be made 
toward the end of reducing costs in coal production and distribu- 
tion, no act of Congress, no order of the Executive, nor any other 
regulation by constituted authority can in the end provide against 
the continuing high costs. 

It is for this reason that we believe that this industry should be 
placed upon the proper basis for more continuous and thus more 
economical production and distribution, with the result that the cost 
of coal to the people Avill be reduced. 

All of which is respectfully submitted this lOtli day of March, 

1920. 

Henry M. Eobinson, Chairman, 

Eembrandt Peale, C o??wiissioner. 

Attest : 

Herbert N. Shenton, 

Executive Secretary. 

Saml. a. Taylor. 

D. M. Reynolds. 

E. A. Golden WEisER. 
Charles O'Neill. 
Budolph R. Eeeder, jr. 



THE MINORITY REPORT 

OF THE 

Lnited States Bituminous Coal Commission 

TO 

THE PRESIDENT 

FROM 

JOHN p. WHITE, Commissioner 



61 



MINORITY REPORT. 



Vv.Au ^Tk. Pnr.sinr.NT : The inal)ility oi the Bituniinon^ Coal Coin- 
nii-sion to agive upon I'luuhunental issues compels nie to set forth 
clearly and briefly my viewpoint. 

1 have in mind the duty and obliiration I owe to you, the industry, 
and the counti*y. My report and award embodies this principle, with 
tile ex[)ressed ho]'>e of enablinir you to so determine and act that 
stability to the industry may accrue, justice and equity be established. 
and nni-est disphiced by contentment in such a full measure as to 
brins: a lona* jieriod of essential well-beino- to all. 

The testimony and evidence submitted to your conunission brought 
forth all the elements enterino- into the controversy between the 
coi! operators and miners that caused the deplorable and disastrous 
condition that led to the creation of this commission. 

If this commission was to succeed in its Avork, a calm, dispassionate, 
judicial decision, unanimous in its findings, should have resulted. 
That this was not accomplished is. indeed, regrettable, which I deeply 
deplore. 

I have carefully analyzed the majority report as a solution of the 
maiii and principal issues, Avith some of which I am in accord. To 
subscribe to their plan of reference of many major problems I can not 
agree. To do so would only leave unsettled many of the clearly 
defined issues that have caused so much contention and controversy of 
long standing. 

The majority in arriving at its conclusion was guided mainly by 
the theory of war-time methods in applying wage increases, namely, 
the increased cost of living. To this principle I can not subscribe. 
Tlie great outstanding fact that developed by this commission's 
hearings in which every citizen is interested is the increased cost of 
coal. 

From 1013 to October 81, 11)10, the mine workers' rate per ton in- 
creased >'0.2o, the operators' receii)ts inci-eased $1.41. and the retail 
dealers* receipts increased $2.10. 

Tl>e mine workers' prewar earnings did not pennit a subsistencel 
wage. While the 24 cents per ton increase on pick and machme min- 
ing recommended in the majority report will not reflect a reasonable ^ 
standard of living of health and comfort into the lives of the mine 
workers, it will materially improve their conditions, and in the in- 
terest of honorable compromise I assent thereto. 

63 



64 EEPORTS OF BITTTMIIsroUS COAL COMMISSIOlSr. 

The following recommendation for the increase to day men pro- 
vides the same percentage increase given tonnage men and follows a 
time-honored practice of the past. 

Reducing to a minimum the grave and disputed points that, in my 
judgment, must be adjudicated, I submit the following plan by which 
final and complete adjustment may be obtained and peace established 
in the industry: 

METHOD FOE PEOMPT SOLUTION OF MAIN AND PRINCIPAL ISSUES 
AFFECTING BITUMINOUS COAL-MINING INDUSTRY. 

That the mining rates and wage schedules in effect on October 31, 
1919, in what is known as the Washington agreement applying to 
the central competitive field and the outlying districts, except as 
hereinafter provided, shall be subject to the following increases and 
conditions. 

1. Wage Increases to Pick and Machine Miners. 

That the mining prices for mining mine-run coal, pick and ma- 
chine, shall be advanced 24 cents per ton of 2.000 pounds. 

In the block coal field of Indiana and in other localities that are 
still on the screen-coal base, , the usual methods of applying the 
tonnage rates shall continue. This also has its application to dis- 
tricts that have a joint understanding in applying wage increases 
to low coal. 

2. Wage Increases to Day Men. 

That all day labor and monthly men, except trappers and other 
boys, be advanced $1.35 per day, trappers and boys receiving less 
than men's wages to be advanced 75 cents per day. 

3. Wage Increases Applying to Yardage, Dead Work, and Room Turning. 
That all yardage, dead work, and room turning be advanced 20 per 

cent. Nothing shall prevent the representatives of the miners and 
operators in any district in joint conference from taking the flat 
equivalent of 20 per cent and applying it to yardage, dead work, 
and room turning if by so doing they will make for uniformity and 
maintain the differentials. Failing, however, to agree to such appli- 
cation, then the 20 per cent shall be applied on the existing rates, 
effective October 31, 1919. 

4. Central Competitive Field Differentials. 

The differentials existing in western Pennsylvania as between the 
thick and thin vein pick and machine mining, the 12-cent machine 
differential in Indiana, and the 4-cent differential in southern Illi- 
nois are disposed of in the following manner: The miners' inter- 
national officials shall select two representatives and the officials of 
the Coal Operators' Association of the Central Competitive Field 



TvEPOETS OF BIxr'MIXOUS COAL COMMISSION. 65 

pliall selert two representatives and the Secretary of the T^'^nited 
States Department of Labor bhall <elec't the lifth and disinterested 
member, and tlie sekvtions herein enumerated sliall constitute the 
tribunal for the purpose of determininu* the disposition of the 
equities involved in the claim of adjusting the foregoing dilFeren- 
tials. This tribunal shall be selected and enter upon its duties not 
later than June 1, 1020, and its awards shall become effective the 
1st day of the month foHowing the determination and conclusion of 
its findings. 

5. Special Application for the Payment of Soapstone. 

Payment for handling soapstone directly overlying the No. 8 
seam of eastern Ohio and the Pittsburgh district of Pennsylvania 
^hall be subject to the increase provided herein; and that part of 
the stone up to and including the 12 inches is referred to the 
operators and miners of these two respective districts, and that 2 
cents a ton be allowed, to be paid upon the ton, or it may be con- 
verted to a yardage basis if desired. 

The principle of determining the flat rates for the payment of 
yardage and dead work may be applied in these two fields in fixing 
and establishing pay for the handling of soapstone. 

6. Western Kentucky Differentials. 

The diiferentials existing in what is known as the western Ken- 
tuckj' coal fields, inA'olving day wage, pick and machine mining, be 
referred back to the joint conference of operators and miners of 
that field for the purpose of mutual adjustment, and failing to agree, 
the matters in dispute shall be referred to a commission composed 
of two operators and two miners from that district, and the fifth 
and disinterested member shall be selected by the four so chosen, 
and failing to appoint, the Secretary of the United States Depart- 
ment of Labor shall make the appointment. Under no consideration 
.-hall the mines -cease operation pending the investigation and find- 
ings of this commission. 

7. Car Pushing. 

We refer this important matter l)ack to the various district joint 
conferences to be worked out in accordance with mutual understand- 
ing, taking into consideration the conditions that obtain in each of 
the districts from which these complaints emanate. 

8. Eight-Hour Day, 

That the present arrangement regarding the working hours of 
mine employees continue in effect until March 31, 1921. Beginning 
April 1, 11)21, the maximum hours for employees shall not exceed 
^'ight hours underground per day and six days per week. 



66 EEPOKTS OF BITUMIN^OUS d^TAL COMMISSION. 

9. Fulfillment of Awsird. 

The award becomes th« base npon which all wage agreements shall 
be predicated. The speeiEc awards set forth «hall not be subject 
to negotiations, but shall apply automatically in such agreements 
or schedules of wages. Latitude to unify or to enter into mutual 
arrangements is authorized, provided, however, that specific awards 
and references as well as principles are adhered to and in all other 
respects the agreement as of October 31, 1919, will be continued in 
effect and the application of this award shall be arranged mutually 
and without recourse to strike or suspension of mining. 

This basic award substitutes and absorbs the 14 per cent average 
jwage increase and becomes effective April 1, 1920, and will continue 
'in effect until March 31, 19-22. 

BEIEF REVIEW OF ABOVE DIFFERENTIALS. 

The differential now existing between the thick and thin seams of 
western Pennsylvania was established years ago in order to com- 
pensate the operators for privately owned locks in the upper pools 
of the Monongahela River. The United States Government took 
over these locks with proper reimbursement to the owners. 

The differential in Indiana of two cents per ton on machine mining 
coal below the Danville, 111., basing point is of long standing. The 
pick rate is in accord with the Danville basing point. 

The southern Illinois differential of four cents per ton was estab- 
lished mainly through freight rates and inadequate transportation 
facilities ; this reason no longer exists. 

The western Kentucky differential, like southern Illinois in char- 
acter, should receive the same consideration. 

Each of the districts with these differentials has enjoyed the Gov- 
ernment selling rate f. o. b. mine as its competitors which now con- 
tinues to exist. Any change in these differentials to their proper base 
can under no circumstances add any of the cost or burden to the 
public or consumer. The majority report evades adjustment of these 
issues while this report definitely and finally points the way to final 
conclusion and determined on their merits. 

FUETHEE WAGE INCREASES SHOULD BE ABSORBED BY 
OPERATORS. 

It is acknowledged in the majority report that 80 per cent of the 
increase of 14 per cent granted to the mine workers at the time of the 
establishment of the commission has already been carried on to the 
public through increased prices by the operators. 

If the 27 per cent increase is granted, as recommended by the 
majority report and concurred in by me, this would leave only 13 per 



REPORTS OF BITUMINOIS COAL (X)MM1SSI0N. 67 

cent which the operators would have to absorb. As Dr. GarficUl 
stated originally that they were able to absorb an increase of l-t per 
cent, and this increase is acknowledged not to have been absorbed, it 
seems apparent that the additional 13 ])er cent now called for could 
be taken care of by the o}>eralors. assuming that Dr. Garfield was cor- 
rect in his original statement. 

CAMPS AND HOUSES. 

The principles and suggestions embodied in this section of the 
niajority report are commendable. In this connection attention 
-liould also be directed to some grave evils which still exist. Some 
on I companies still maintain what is known as the '' closed camp.'' In 
-these camps the com])anies dominate all the conditions of life of the 
people. The slightest opposition of the miner to the living and work- 
ing conditions otlered, the coal companies are in a position to evict 
them from their houses and impose upon them almost an,y conditions 
they may desire, including discrimination against them on account of 
membership in the United Mine Workers or any labor organization. 
These conditions are un-American — economically, socially, and polit- 
ically — and can not be too stiongly condemned. 

POWDER. 

The findings of the majority report would be acceptable with two 
additions which are of fundamental importance: (1) That the price 
to be charged for powder in the future shall under no conditions ex- 
ceed the prices charged on October 31, 1919; and (2) that detonators 
shall be furnished to the miners without charge. 

COAL TO MINERS. 

As a substitute for this section of the majority report, I would sug- 
gest the following: 

The price in effect on October 31, 1919, for house coal furnished to 

the miners at the mines shall be increased by adding the labor cost 

only. Xo stipulation should be made as to the cost of delivery of 

coal to the minei's' house for the reason that this provision may be 

()iised by excessive charges. 

BLACKSMITHING. 

The simplest and most direct method of handling this problem 
vo\dd be to substitute for the findings of the niajority report a rec- 
inniendation that '* the charge for blacksmithing be made on a basis 
f actual cost." By sanctioning charges as of October 31, 1919, 
many excessive charges would be perpetuated. In some instances 
miners are now arbitrarily charged for blacksmithing in machine 
mining. 



68 EEPORTS OF BITUMmOUS COAL COMMISSIOl^. 

CAR PUSHING. 

The statement made in the majority report that car pushing is a 
natural condition of the industry is without foundation in fact. 
The joint report is contradictory. The first paragraph states that 
the complaint has no foundation, the second reciting that it has 
foundation. The Government itself in the central Pennsylvania 
field allowed during the war miners five cents a ton for pushing cars. 
The majority report states there is not sufficient information on this 
subject to form a correct conclusion. The commission is, therefore, 
admittedly incompetent to pass upon the question. It should, there- 
fore, be referred to the various joint conferences to be worked out 
through mutual understandings and agreements. 

PRICE FIXING. 

The price-fixing policy should be continued until June 1, when the 
operation of the laws of supply and demand will be such that it will 
no longer be necessary. 

SPECIAL CASES. 

The majority report is objectionable in its recommendations rela- 
tive to the central competitive field, because it leaves unsettled these 
vital and all-important issues, which have caused so much of the 
existing unrest and intensification. 

The method provided by the joint report merely means a continua- 
tion of the conflict, as neither side, as experience has shown, will 
yield. This situation can only be effectively handled by the creation 
of such a commission as I have already in the beginning of my report 
recommended. 

The recommendations of the majority report as to northern Illinois 
are acceptable. 

As a substitute for the recommendations of the majority report for 
the State of Washington, I would recommend the following: 

The situation in the State of Washington, as presented by 
briefs and oral statements of the operators and miners, reveals 
one of the most unusual and complex problems submitted to 
this commission for its determination. The operators show by 
their briefs that in many of the commercial mines of the State, 
which produce the majority of the State's tonnage and sales 
realization, the price is below the production cost. They also 
show that foreign coal and fuel oil enter in a large degree into 
the future life of the coal industry in that State. 

The miners in rebuttal attack the figures in the briefs of the 
operators, declaring the depreciation, depletion, and miscella- 
neous items of production cost are excessive and unwarranted. 



REPORTS OF BITUMINOUS COAL COMMISSION. 69 

In vitMv of the vital issues involved and the lack of time and 
funds for tliis commission to make a survey and enable them to 
deal adequately with the problem, Tve recommend the folloAving: 

That the representatives of the miners and operators of the 
State of Washington, at the earliest possible moment, select one 
(operator and one practical miner, the two selected to agi'ee upon 
a disinterested minino; engineer as the third member, and, fail- 
ing to agree upon such a person, the Secretary of Labor shall 
make tlie aj^pointment. This local commission shall make a 
survey of all the mines in the State to develop the facts under- 
lying the whole problem as it applies to this industry in the 
State of AVashington and at the earliest possible moment submit 
its report to the joint conference of operators and miners of 
that State. Pending this investigation the miners and op- 
erators will jointly agree on what basis the mines will operate 
while the survey is being made. The expenses incurred by this 
commission shall be borne equally by the operators and miners 
of the State. 

I would also recommend the substitutive for the section of the 
majority report entitled ''Alabama, Tennessee, eastern Kentuckj^ 
and Maryland" the following: 

The representatives of the miners from these States filed briefs 
citing the wages and conditions of employment, but, as the 
records show, none of the operators from these districts ap- 
peared before the commission, merely filing letters with the 
commission to the effect that tlie}^ have no joint relations with 
the mine workers in their districts. 

In each of these districts during the war wage increases were 
adopted and put into effect b}^ the United States Fuel Adminis- 
tration and tribunals were set up for the adjustment of the 
usual complaints common to mining. These tribunals included 
a permanent umpire in each district, and in order that justice 
may be done to all and mine workers be given the right, as given 
mine workers elsewhere, the commission would recommend 
that the operators arrange to meet with representatives of the 
miners in those districts and to put into effect the award of 
this commission, and to adjust the differences that may prevail 
in the industry in their respective localities, to the end that 
industrial peace and tranquillity prevail. 
The recommendations of the majority report as to " Kanawjia, 
Point Creek, and Cabin Creek districts, in West Virginia,'' are ac- 
ceptable. 



70 REPORTS OF BITUMIIs^OUS COAI. COMMISSION". 

SPECIAL KEPORT. 

In order that more detailed expressions of my views as to the fore- 
going and other points may be had, I have appended herewith for 
reference Appendix A. a complete tentative award which I origi- 
nally formulated for the consideration of the commission. 

WAGES. 

The joint report predicates its calculation of what it deems a fair 
wage award upon the rise in the cost of living as estimated in a 
preliminary figure of the United States Bureau of Labor Statistics, 
namely, 97 per cent increase since the prewar period up to Decem- 
ber, 1919. Thej^ say, further, they "were guided by the principle 
that every industry must support its workers in accordance with the 
i^merican standard of living." Unfortunately, this increase of the 
majority report, even if granted — and we show later it is not — does 
not conform to any known standard of living except one that is neces- 
sarily degraded and debased, because the prewar wages of the mine 
workers were inadequate for comfort and decency, and the joint 
report makes no attempt to show that the awarded rates will enable 
the recipient to earn a wage sufficient to maintain himself and family 
above the poverty level. The mine workers submitted data from 
Government sources and from prominent experts, all pointing to 
the necessity of at least $2,000 per year, whereas the proposed in- 
crease will bring the yearly earnings that may be expected up to 
an average of only $1,200 to $1,H00 and a maximum of only $1,600 
to $1,700. 

We object to this method of wage determination, for two reasonsl^ 
First, because it results in perpetuating all the old hardships and 
suffering attendant upon an inadequate wage; and, second, because 
it makes no allowance for the fact that during the past two and 
three years the mine worker has been obliged to curtail his standard 
of living on account of prices soaring far above the purchasing 
power of his wage. It is true the report makes mention of this in 
the following terms : 

We hope that there will be a decline in the cost of living in the next two 
years, but we realize that the miners have borne an increase above their 
advance of wages and consider the possible future decline in living costs 
as an offset for these losses. 

In other words, the report sets a " hope " before the mine workers 
as sufficient recompense for actual monetary loss in the past. With 
all the objections that exist, however, the mine workers would be 
willing to accept gracefully this method of procedure, if the calcula- 
tion and the apportionment of the increase were to be properly made. 

There are two errors into which the joint report has fallen in the 
calculation and apportionment of its wage increase. In the first 



REPORTS OF BITUAIIN' OUS COAL COMMISSION. 71 

pla^e. the woightinix chosen is upon the tanha<je basis, instead of upon 
the man basis; and in the second phice. the day workers, who have 
received the larg^er increase heretofore, are utilized to depress the "* 
averajre increase due to pick and machine miners, and fhm arc not 
themselves awarded ereti the hierease as tJius depressed. 

We make no special criticism upon averas^nfi: i*espective increases 
that have heretofore been received in tlie four fields of western Penn- 
sylvania. Ohio, Indiana, and Illinois on the tonnae:e basis, and we 
accept the figures of the joint re]:)ort for the average increases in the 
central competitive field that have l>een received, respectively, by the 
machine miner, the pick miner, and the day worker. These increases 
are: 

Per cent. 

Machine miner 48. 5 

Pick miner 35. 5 

Day worl^er 7(5. 1 

However, when it is sought to combine the increases of the machine 
and the })ick miner, obviously the weighting chosen should be on the 
basis of the number of men actually employed at the two occupations, 
and not upon the number of tons produced by the two methods. This 
wage determumtion is intended' to fix the compensation to he paid to 
human beings, to enahle tlwm to ffupport life in such a Truimier that 
they iriU he a credit to the country. Tlie number of tons of coal that 
these human beings are able to produce should not be allowed to be a 
determining factor, though it is doubtless important. A coal-mining 
machine is able, on the average, to produce about 17,000 tons of coal 
per year. The production per employee is c-onsiderably less than 
1,000. If, then, the figures are weighted on a tonnage basis, tlie ma- 
chine is made the dominant factor, far outweighing the man. 

Below is giA'en in parallel columns the effect of these two systems of 
w^eighting upon the increases that have been received since the prewar 
period (1913) : 

Weighting on tonnage basis. 

Mncliine miner m% of 48.5% 32. 01 23% of 48.59o 11. 16 

Picli miner 34% of 35.5^6 12.07 77% of 35.5% 27.33 

100% 44.08 100% 38.49 

The effect of this difference is .^een when the miner is combined 
with the day man. (At this step the joint report uses the man 
basis, though here again the mine worker i-eceives the worst of it 
owing to the excessive weiidit placed upon day man — 36 per cent 
instead of the correct 30 per cent.) The joint report states that the 
average increase already received for all employees combined is 
5.5.61 per cent. The projx'r weight Inix on the man basis reduces 
this figure to o2 per ( ent. and if the proper distribution of minei-s 



72 EEPORTS OF BITUMINOUS COAL COMMISSIOllT. 

and day men is adopted the figure will be 50 per cent. This means 
that the increase to be awarded, if it is done on this basis, should be, 
not 27 per cent as claimed by thb joint report, but 31 per cent, and 
the increase in tonnage rates should be not 24 cents per ton but 27 
cents per ton. 

It should be noted that in the above, as in the joint report, the day 
men who, it is admitted, have since 1913 received a greater increase 
than the miner, are utilized to bring down the average per cent in- 
crease that should be granted in order to raise the present rates up 
to the same purchasing power they possessed in 1913. If the day 
men are not taken into account, and simply the wage rates of miners, 
both pick and machine, are considered, it would be necessary to in- 
crease these tonnage rates by 37 per cent or by 32.4 cents per ton 
according to the weighting on the tonnage basis, or by 42 per cent 
or 36.8 cents per ton, according to the weighting on the man basis. 

The joint report, in our opinion, is grossly uniair in this part of 
its calculations. One of the two methods should be chosen in order 
tc be consistent: Either the increase due the miners should be de- 
termined irrespective of the day men, and then the increase due the 
dr.y men should be calculated independently; or else the day men 
should be taken into account and the same increase given to all. 
The joint report takes the day men into account, thus depressing 
the increase due the miner, and then proceeds to fix the increase to 
be awarded these da}^ men at an entirely arbitrary figure. Mani- 
festly, if the day men are included in the combined average, they 
should receive the increase that results from the calculation. 

Summing up the above, if it is decided to base the award solely 
upon the increase in the cost of living, granting nothing to the em- 
ployees as recompense for losses they have borne during the past few 
years when their wages lagged far behind soaring prices, the aver- 
age increase already given the pick miner, the machine miner, and 
the day man should be combined, and weighted according to the 
numbers in the respective classes. This procedure results in an in- 
crease amounting to 31 per cent as being necessary over and above 
the present rates of all employees. 

In order to apply this increase, the tonnage rates of both pick and 
machine miners should be increased 27 cents per ton, that all rates 
for yardage, dead work, room turning, and the like be increased by 
31 per cent, and that the wage of day men be likewise increased by 
31 per cent. 

In order that the losses which the mine workers have undergone 
through previous failure to raise their rates to correspond with the 
increased cost of living may be apparent, and for the further pur- 
pose of showing that an incease in rates of 60 per cent would be 



EEPOKTS OF BITUMINOUS COAL COMMISSION". 73 

necessary during the next two years to adequately reimburse them, 
a brief reference may be made to the data submitted by tlie mine 
workers during the proceedings. 

The mine workei's presented a series of tables and charts showing 
that if the relationship between wage rates, cost of living, and value 
of the coal produced which existed prior to the war is to be main- 
tained a 60 pQY cent increase must be granted. 

The wage rate taken as a fair example is the rate per ton for hand 
mining in the Pitt.sburgh district. This rate is the basing rate for 
the district, and is not very difl'erent from the basing rates in other 
parts of the central competitive field. Since 1909 this rate has in- 
creased 49.C) per cent, while in the same period the value of the 
coal produced per ton has increased 141.1 per cent. This discrep- 
ancy between the wage rate and the value of the product has existed 
only since 1910. Before tliat time the two maintained a ver}- close 
relationship. 

If the wage rate had kept pace with the value of the product 
since 1916 as it did up to 1910, the rate in 1918 would have been 
$1.41 per ton. or 61 per cent above the actual rate at the time. In 
other words, the mine workers' claim amounts merely to the claim 
that the old relationship between wages and value produced be re- 
established. 

And by a strange coincidence approximately the same rate will 
be necessary if the mine workers are to be compensated for the in- 
crease in the cost of living. As already pointed out, the present rate 
must be increased by 36.5 per cent in order to bring it up to the old 
relationship with the cost of living. Such an increase w^ill bring the 
wage rate in question up to $1.1958 per ton. 

But another factor enters in. The last adjustment of the wage 
rate took place in Xovember, 1917, and just barely brought the level 
of wages even Avith the cost of living. During the succeeding 27 
months the cost of living rose steadily. Each month the mine 
worker's wage would buy less. In other words, each month the 
discrepancy between the increase in the cost of living and his wage 
became gi-eater. If we grant that the workers liave a right to a 
wage which keeps pace with the cost of living, this means that each 
month the mine workers were losing a part of the wages which 
were justly due them. 

Wliere wages are readjusted only at long intervals equity in- 
quires that they be raised enough in excess of the increase in the 
cost of living to cover this steady loss, which goes on from month 
to month. In order to fix the present amount which will compen^afe 
the miners for the hardships they have suffered during the peiiod 
when their wages were falling fui-ther and further behind the c(jst 



74 KEPOETS OF BITUMINOUS COAL COMMISSION. 

of living the average loss per ton must be ascertained. In one of 
the exhibits presented by the mine workers this has been carefully 
worked out. Careful investigation showed that the aggregate loss 
suffered during the 27 months amounted to $4.95 per ton. 

If a rate is fixed at this time to be effective for two years, starting 
with Januarj^ 1, 1920. the amount lost during 27 months will have 
to be made good in 24 months during which the new rate is to be in 
effect. This would add one-twenty-fourth of $4.95, or $0,206, to the 
rate per ton necessary to bring the 1917 wage rate abreast of the cost 
of living. Adding this $0,206 to $1.1958 brings the total to $1.4018 
per ton as a just and equitable rate to be fixed for the ensuing two 
years for the pick miners of the Pittsburgh district. 

It is an interesting fact that the rate of $l,Jfil8 thus obtained is 
essentially the same as the rate of $l.If,l per ton necessary to ?nmn- 
tain the old relationship tcith the value of the coal produced.) and is 
practically an increase of 60 per cent over the present rate, 

THE LIVING WAGE. 

The proposal of Messrs. Eobinson and Peale for a 27 per cent 
increase in wages is based upon the idea that such an increase will 
restore the prewar status of the mine worker. This results in a 
gross injustice, as pointed out in preceding section, to those employees 
whose wages had been little increased between 1914 and 1919. Thus 
the pick miner, who previously had been the basing occupation in 
making wage increases, received an increase of only 35.5 per cent 
between 1914 and 1919. The proposed additional increase of 27 per 
cent would give the pick miner a total increase of only 72 per cent 
over his 1914 rate, an increase far below the increased cost of living 
as accepted by Messrs. Robinson and Peale themselves. It is abso- 
lutely no solace to the pick miners, under such circumstances, to be 
told that the average increase for all mine workers had been as great 
as the increase in the cost of living, no more than it would be to a 
street car conductor to be told that, even though he received no in- 
crease in wages, the average earnings of street car employees had 
enormously advanced, owing to large advances granted the motor- 
men. Each man must live on the opportunity of earnings within his 
own occupation. 

But even if these inequalities had been adjusted and every occu- 
pation had been restored to its prewar earning capacity, the mine 
Avorkers would not feel that full justice had been done. For the 
primary demand of the mine worker before this commission was not 
for a restoration of prewar conditions. Their primary demand was 
for a living wage — a wage which would permit the average mine 
worker to maintain his family in health and decency; to live in 



REPORTS OF BITUMINOUS COAL COMMISSION. 7i) 

modest comfort as regards housing, food, and clothing for his wife 
and children: to enjoy some of the minor pleasures of living: to set 
aside some little of his income against old age and disability; to live, 
in other words, according to the accoi)ted standards of an Ameiican 
citizen. 

AVc are highly gratified to note that Messis. Eohinson and Poale, 
in their i-eport. recognize the justice and righteousness of this de- 
mand. They state that in arriving at their proposal they " were 
guided by the principle that every industry must support its workers 
in accordance with the American standard of living." Thus our 
contention is conceded as fully and expressed as well as we could 
desire. The disappointment is that the concession is merely in words. 
The principle is granted, but no attempt is made to apply it. In- 
stead, the wage proposal made is based, as noted above, on the idea 
that justice may be done by restoring unjust conditions of the past. 

In making a demand for a living wage the mine workers were 
asking for ncthing extreme, nothing that had not been guaranteed hy 
governmental policies during the war and sanctioned by the opinion 
of all enlightened peoples. Thus in the proclamation of President 
AVilson of April 8. 1918, and in the principles of the National War 
Labor Board, it was provided that if the rates of pay of workers were 
below a living wage, these rates would be brought to such a level as 
to provide a decent standard of health and reasonable comfort. If 
rates of pa}' before the war were below the requirements of a living 
wage they were to be advanced n(it only as the cost of living advanced 
but to a higher point — to a rate which would meet the requirements 
of standards of living based upon health and reasonable comfort. 

Later the leading commercial and industrial nations of the world 
gave their sanction to the principle of the living wage in the peace 
treaty, holding of supreme international importance ""the payment to 
ihe employed of a wage adequate to maintain a reasonable standard 
f»f life as this is understood in their time and country." 

In addition to the political, economic, and social sanction which 
has been given to the principle of a living wage, it has recently been 
given the widespread moral and spiritual approval of the churches. 
The failure of industry to paj^ a living wage has been pronounced by 
the leading church denominations, both Catholic and Protestant, 
^^ ithout exception, as not only antisocial but as opposed to the prin- 
ciples of Christianity. 

Such facts mean that the old theory of wages, prevalent in the past 
generation, has received the unqualified condemnation of the civilized 
world. This old theory or " law of wages " was that wages were 
determined by the forces of supply and demand. Labor, in other 
words, was viewed merely as something to be bought and sold. Little, 
if any, consideration was given to the human side of the wago 



76 EEPOETS OF BITUMINOUS COAL COMMISSIO:^". 

problem. As a result of this law, labor's position was hopeless. It 
was required to suffer all the ills that arose in the industrial system 
as if ordained by the laws of the universe. This meant that in the 
bituminous coal industry the workers not only had to undergo the 
results of lack of markets but also had to contend against an over- 
supply of labor brought about by unrestricted immigration. 

During recent years, however, and especially during the war period, 
there has been a complete change in economic thinking in regard to 
the determination of wages. The enlightened opinion of mankind 
refused to continue to sanction such a hopeless theory. More consid- 
eration came to be extended to the worker as a human being. Gradu- 
ally it came to be felt that human welfare was above considerations 
of relentless economic selfishness. Industry came to be considered as 
existing for men and not men for industry. Industry, it was con- 
cluded, should be the servant and not the master of humanity. Any 
industry which could not operate under these humane conditions was 
antisocial. Labor was no longer to be considered as a raw material 
of industr3^ to be bought and sold at a price. 

It is in the light of those principles that the justice of the mine 
workers' contentions must be considered. And in the light of these 
principles we find that even if the miners are granted sufficient 
increases to keep pace with the rising cost of living, the resulting 
rates would fall far short of the measure of justice. Such a miserly 
policy would simpl}^ sanction the preservation of rates of pay and 
working conditions far below the level of subsistence and health — 
rates which would promise no possibility of comfort or of provision 
for sickness, old age, or incapacity. It Avould simply approve a 
standard of earnings inadequate to the support of a family and to the 
education of children. The mere maintenance of the old earnings 
would mean tlie necessity of continuing the practice of putting 
children and j^oung persons to work, of bringing lodgers into the 
home in order to supplement the inadequate earnings of the head 
of the family. 

The best prewar investigation of the problem of a living wage was 
made for the Russell Sage Foundation by Dr. Eobert C. Chapin. 
The results of his investigations, published in 1909 under the title 
" The Standard of Living Among Workingmen's Families in New 
York City," together with the conclusions of other authoritative 
investigations, show that annual earnings of $900 by the head of an 
average household were barely sufficient prior to the war for a mini- 
mum of physical subsistence. Dr. Chapin's analysis of the propor- 
tion of underfed in the various income groups showed that of the 
total number of families earning less than $800 annually 71 per cent 
were both underfed and underclothed. 



KEPORTS OF BITUMIXOUS COAL COMMISSION. 77 

In the steel manufacturing town, Johnstown, Pa., a governmental 
investigation prior to the war disclosed that the death rate among 
infants was considerably above the average unless the family had an 
annual income of at least $S00. This is an indicator of the degree 
of health in living conditions. It can be interpreted only as meaning 
that a family could not provide sanitary housing, healthful environ- 
ment, and adequate food, and that the mother could not have the 
proper rest at home u.nless the family income was over $800 a 
year. And it should be noted that the majority of these studies as to 
the minimum requirements of healthy family life were made during 
the period 1007-1910. During the succeeding years the cost of living 
steadily rose until, in 1014. $000 was inadequate to maintain even a 
bare subsistence. 

TMien we turn from these studies to a consideration of the actual 
earnings of the mine workers prior to the war, we lind those earnings 
below the standard set for bare subsistence. According to a report 
made by the Bureau of Labor in 1902, on the basis of a detailed 
investigation of the families of 758 mine workers, all earned less 
than $000 a year, 03 i^er cent earned less than $700, 81 per cent earned 
less than $600, and 54 per cent, or a majority, earned between $100 
and $600 annually. 

One of the most exhaustive and comprehensive investigations of 
the bituminous coal mining industry ever made was conducted by a 
special body, the United States Immigration Commission, during the 
year 1908-0. It included within its scope practical!}^ all mining 
areas of the country. It disclosed that the average annual earnings 
of all male heads of the 2,100 households studied by the commission 
averaged only $451 for the country as a whole. The average annual 
earnings of the native-born workers was $500 and of the foreign 
born $442. The average family income of these 2,100 families was 
only $577, the American families showing an income of $707 and the 
foreign born of $560. In the iSIiddle West the average family in- 
come was only $532, in western Pennsylvania $551, in the South $600, 
and in the Southwest $582. Only about two-fifths of the families 
investigated derived their entire income from the earnings of hus- 
bands at the mines. The remainder found it necessary to supplement 
the earnings of the husband by taking boarders or lodgers, or putting 
the children of the household to work. 

The average annual earnings of Illinois pick miners, according 
to the State board, were only $485 in 1902, $538 in 1907, $516 in 1909, 
$5.")6 in 1012, and $526 in 1013. Machine men and loaders in Illinois 
in 1014 earned on an average only $724. The average earnings of all 
mine workers in Illinois in 1013, a very prosperous year, were only 
$704; in Ohio $766; in Indiana $708; in western Pennsylvania $856; 



78 EEPOETS OF BITUMIISTOUS COAL COMMISSIONS'. 

or an average for all of these States of $761. During the next year 
the average earnings were only $615. 

All of these facts, gathered from the most reliable sources, lead to 
the irresistible conclusion that prior to the war the mine ivorkers were 
not securing earnings adequate even to maintain the harest physical 
requirements of their families. 

It is, therefore, evident that were mine workers given increases 
in rates of pay corresponding to the rise in the cost of living the 
present level of earnings would be unsatisfactory to a nation which 
holds important the physical and moral well-being of its population. 
Adding the increased cost of living would only restore the inadequate 
prewar standards. What the mine worker needs, and what the in- 
terest of the country demands, is that, irrespective of increases in 
living costs, the rates of pay should be increased sufficiently to assure 
him a living wage. 

In view of the need of a living wage, and of their demand for such 
a wage, the mine workers felt under obligation to define what they 
meant by a living wage. In doing so, however, they did not urge 
their own views. They were satisfied to rest their case upon the 
results of the studies made by qiuilified students of recognized scien- 
tific authority and impartiality. They had all the authoritative 
material as-sembled and analyzed. In addition, they requested Prof. 
W. F. Ogburn, of Columbia University, a recognized authority on 
cost of living and living standards, to make a special study and report 
on the subject of the living wage as related to bituminous mine- 
workers' families. 

It was, of course, realized that the cost of living, as well as the 
methods of living, in bituminous mining areas were different in some 
respects from those which were characteristic of industrial cities. 
In order to meet this difficulty, the United States Bureau of Labor 
Statistics was requested to make, and is at present engaged in mak- 
ing, a study of specific mining centers. With the material which 
had already become available, Prof. Ogburn adjusted items of earlier 
studies to the peculiar needs of the mine workers and to the j)eculiar 
conditions of the mining towns. The result of his work is a budget 
which is believed to represent the barest minimum of health and 
decency for a mine-worker's familj^ The total cost, at prices now 
prevailing in the towns covered by the studies of the United States 
Bureau of Labor Statistics, is $2,2^3.94. 

This budget, as has been the case in all previous studies, takes as a 
basis a family of five. This is done because the average American 
family is of this size, because marriage is socially and morally de- 
sirable, and because it is necessary that marriage should result, on 
the average, in a minimum of three children if the race is to perpetu* 
ate itself. As a matter of fact, it seems certain that the average 
mine- worker's family contains more than five members. 



REPORTS OF BITUMINOUS CO.\L COMMISSION. 79 

The standard of living provided in this bud<»:et represents certainly 
no more than a niininiuin of human deoonoy. It has been described 
by Prof. Oiiburn as a '•minimum-comfort budget."*' And there is 
little doubt that the average housewife, after glancing at the full 
list of items given, would emphasize the word ** minimum.''' The 
amount allotted to food allows but slightly over $2 a day for the 
entire family of live. The following facts taken from the detailed 
budget will show how conservative Prof. Ogburn has been in his 
estimate regarding clothes: 

The man's suit, bought at $40. is to last him 2 years. His over- 
coat, priced at $35, is to last him 4 years; and his raincoat 6 years. 
The clothing problem of the miner is complicated by the fact that it 
carries a very considerable item of expense for the clothes which he 
wears down in the mine. 

Perhaps the most noticeable economy is found in the clothes 
allowed the wife by this budget. Xo allowance is made for those 
minor clothing luxnries which are of great importance, if not of 
actual necessity, to the comfort of a woman. The budget provides 
simply for homemade cotton waist-s and dresses. And the winter 
clothes which she wears when she goes ont must do her at least two 
years, while a cheap winter coat must last three j^ears. 

In short, this budget provides only those things that a family must 
have in order to maintain health and keep its self-respect. It pro- 
vides for no, luxuries and omits many things wliich are necessities, 
according to our American standards. Most striking of all, it pro- 
vides for no savings. Surely a man should be expected to have a 
sufficient income to save at least 10 per cent. This item alone would 
add $200 to the budget. 

To show how conservati\e the budget is, the main items are quoted 
in full: 

Stdiunary of Prof. 0</hKni'.s budget. 

1. F^xKl $801. 38 

2. nothing: 

Husbimd $146. 81 

Wife 180. 92 

Boy (11 years) 77.40 

Girl (5 yf^ars) 60.13 

Bov (2 years) 34.00 

455. 26 

.'..Housing, fupl. Hnd light 2.S6. 00 

4. >[iscellaneou.s 570. 80 

Total 2. IIS. 04 

Average saving on garden and chickens 15.00 

2, 103. 94 
Explosives, smithing, etc _" 140.00 

Total 2. 243. 94 



S-O EEPOETS OF BITUMIi^OUS COAL COMMISSIO^iJ". 

Accepting the above budget as representing the best of present- 
day thought on the subject, it remains to point out how completely 
an increase of 27 per cent in present wage rates would fail to raise 
the great body of bituminous mine workers to a level of healthy and 
decent living. For this purpose, the pick miner may again be taken 
as representative. There are not as many pick miners as machine 
miners in the bituminous fields, and their average wages are probably 
not as high, but the basic principle of the living wage is that it 
should be high enough to permit all workers, even the unskilled, to 
maintain the level above indicated. At rates prevailing in 1919 the 
actual annual earnings of pick miners in all bituminous mines were 
approximately $1,130, according to the comprehensive study made 
by the United States Bureau of Labor Statistics and published in the 
December, 1919, Labor Keview. According to exhibits submitted 
by the operators themselves the average annual earnings of pick 
miners and loaders in the northern Illinois district were, at 1918-19 
rates, under $1,000 a year. Furthermore, these same exhibits show 
that if conditions had been such as to permit these men to work 
every day when the mines were in operation in 1918, they would have 
been able to earn not over $1,200 per year; that if conditions Imd 
been such as to permit these men to work every clay when the mines 
were open in 1919, when conditions were worse, their annual earn- 
ings would have been less than $1,000; and that in less than one- 
third of the companies shown in the exhibit were the average monthly 
earnings of all occupations listed as high as $100, while in almost half 
the cases the average monthly earnings were below $80. 

It is clear, therefore, that an increase of 27 per cent in present wage 
rates would fall far short of raising these workers to a level of health 
and reasonable comfort. 

Until this level is attained the mine workers will remain on the 
precarious level of mere subsistence — where the great body of them 
now are. It is from these deplorable conditions that we wish to 
escape, and our hope has been that we would be granted a living wage 
so that the workers in the mines and their families might arise from 
the economic darkness and despair which now engulfs them into the 
economic sunlight. We are weary with long years and generations 
of mere existence. We wish the opportunity to earn a wage which 
will command a human standard of living and hold out hope for the 
future. 

lEEEGULAEITY OF EMPLOYMENT AND THE SHORTER WORKING 

DAY. 

The Relationship Between Production and the Problem of Irregularity. 

We agree fully with the statement of the majority report concern- 
ing the importance of irregularity of mining operations as a cause 
of unsatisfactory working conditions as Avell as of high prices. The 



REPORTS OF BlTUMIXOrS COAL COMMISSION, SI 

funclaiiiontal importaiu'o (vf this pliasc of llio subject was ably stated 
by Mr. Herbert Hoover in his inaugural address before the American 
Institute of Mininir and Metalhiraical Enizineers, February 17, 19'20, 
in which he said : 

Many of tlie question-^ of tlii^ industrial rolationship involve large engi- 
iireriuir iirol^lenis. ns nil instance of which I know of no hotter example 
than the issue you plan for discussion to-morrow in conned ion with tlie 
soft-coal industry. Broadly, here is an industry functionin.i;- hadly from 
an en.irinoerinir and consequently from an economic and human standpoint. 
Owin?: to the intermittency of production, seasonal and hical, this industi'y 
has heen o(iuippcd to a peak load of 20 or .SO per cent over the avera.ice 
load. " It has heen ]irovided with a '27i or 30 per cent larp:er lahor coni- 
piement than it would require if continuous operation could he hrou.iilit 
about. * » * TlKM-e lies in this intt'rmillency not only a lon.u; train of 
human nns^M-y throuirh intermittent employment, hut the economic loss to 
the comnmniiy of over 100,000 workers who could he a])plied to other pro- 
(luclion, an.d th^' cost of c(»al could he reduced to the consumer. This inter- 
mittency lies ;!t the root of the last strike in the attempt of the employees 
to secure an e<|Ual division amonc: themselves of this i)artial employment 
at a waJie that could mei^t their view of a livin.ir return on full employment. 

This states the gist of tlie whole problem. The question of a living 
wage can not be considered apart from the pro})lem of securing the 
mine worker enougli days of employment to enable him to earn such 
a wage. In fact, the whole case i)resented by the Ignited ^line Work- 
ers of America has been based upon the fundamental unity of the 
request for a living Avage and the request for a shorter working day. 

The fact brou.ght out in the majority report, that the principal 
cai'iscs of this irregularity are the unusual character of the market 
and inadetjuate car supply, are simply another way of stating that 
the problem is one of overproduction. This fact is recognized by 
the majority report when it states as one of the two main causes of 
idle:iess ''overdevelopment of the industry "' with the following sup- 
porting statement : 

At the iiresent time America requires less than .")00,000,000 tons of 
bituminous coal a year, while the capacity of the mines in operation is 
over 7(X).(X»O.CK)0 tons. 

Under the stimulus of war demand many new mines were opened and 
many old ones expanded in order to secure sufhcient coal to meet the ex- 
ceptional and urgent national requirements. As a result, the coal industry, 
uJiiih jfou ^iKJuUitivclii overdeveloped before tlie trar, is still more over- 
developerl now and employs more capital and more lahor than is necessary 
to supply the present needs of the country. 

Full-time employment in the coal mine can not, therefore, he expected 
ni.til the industry is put on such a basis that only those mines remain in 
operation whose outi)Ut is required to supply the needs of the country. 

This statement of the ca^e is absolutely sound, We wish to em- 

pliasize that both the ])ublic and the workers are sufTering from the 

diseased condition of the industry jjrought about by speculation as 

ihe result of unregulated competition. To what extent will be shown 

later. But we wish to point out that after carrying the analysis to 

iliis point the majority report comes forward with no constn.ictivc 

suggestion to meet this problem of an overexpandcd industry. In- 

109222'— 20 6 



82 REPORTS OF BITUMINOUS COAL COMMISSIOIiT. 

stead it evades the issue and attempts to make the public believe 
that the Avhole matter can be handled by regulating the market so 
that the demand will be equally distributed throughout the year. As 
Ave will show, this is a fundamentally superficial approach to the 
problem. It does not take into consideration the very facts Avhich 
the report is at such pains to emphasize. And it is on this -account 
that Ave feel the importance of a thoroughgoing study of the problem 
and an intelligent decision from the angle suggested by Mr. HooA'er. 
as aboA^e quoted, who would not, we feel sure, palm off on the public 
the idea that the unemployment due to the fact that the n^n were 
producing too much could be removed by distributing it throughout 
the year. As Mr. Hoover said, it is an engineering problem. 

Before turning to the really fundamental approach to this problem 
offered by the mine workers, we wish to call attention to another 
statement upon the. subject in the majority report, a statement Avhich 
gives an entirel}^ erroneous impression. We refer to the assignment 
to " Labor shortage and strikes " of one-fourth of the time lost. The 
United States Geological SurA^ey provides us with ample material 
from which to form an estimate in regard to this point, A diagram 
prepared in February, 1920, shows that for the entire period, 1010 
to 1918, only 10.6 per cent of the days lost in the bituminous coal 
industry Avere due to strikes. Since October, 1917, the Geological 
Survey has been issuing weekly reports as to the allocation of days of 
nonoperation to the various causes. During the first nine months of 
1918, a year Avhen the market Avas abnormal in its ability to absorb 
full production, only 19 per cent of the loss of production Avas due to 
labor shortage and strikes. The higher figure given in the majority 
report may be best explained by the following analysis of the Aveeks 
showing abnormally high percentage of time lost due to labor. 

An examination of the reports of the Geological Survey will show 
that labor shortage and strikes are charged Avith more than a 10 
per cent loss of production in only 9 out of a total of 108 
Aveeks. That these instances largely resulted from an observance 
of holidays is shoAvn by the folloAving explanations, given mainly 
in the Geological Survey's Aveekly bulletins : 

Week ending. Cause of labor shortage. 

October 20, 191T__. Strikes in Illinois. 
December 29, 1917_Christmas. 

April 6, 1918 Miners' holidays and Liberty loan day. 

Jnne 1, 1918 Memorial Day. 

NoA'ember 2, 1918_.Epidemic of influenza and unexpected warm weather. 
November 9, 1918— Election day and celebration of premature notice of the 

armistice. 
November IG, 1918.Celebration of signing of the armistice. 
December 29, 1918-Christmas. 
NoA^ember 1, 1919_.Beginning of the strike. 



EEPOKTS OF BITUMINOUS COAL COMMISSION. 83 

It is admittedly conmion bolioi", aiul that holier has been fostered 
and encoiiraaed with the intent of di^-ereditino- labor, that the miner 
liimjself is largely responsible for the notorious unemployment rec- 
ord in the industry. But from a careful analysis of the reports of 
the (leolooical Survey it becomes evident that the miner, as a rule, is 
clearly the victim rather than the cause of the unfortunate conditions 
which have led the majority report to speak of the bituminous indus- 
ti'V as a part-time indu>tiy. A conservati^•e estimate would place 
four-fifths of the nnemj)lovment beyond his control. And with this 
statement it must be recotrnized that were the mine worker to work un 
the days when idleness is recorded against him he would l)e faced 
with connxMisatory days of idleness some time later, for the industry 
only produces Ions: enough to satisfy the market. 
Thirty-Honr Weekly Average Can Not Be Increased by Regularizing Market. 

To put the matter most charitably, the majority report shows great 
inconsistency in that, while recoonizing the inalnlity of the market to 
absorb full production, it still im2:)lies that a solution can be reached 
by regularizing the nravket. In other words, the i)resumption is that 
unemployment can l>e eliminated i)y being distributed. The casual 
reader of the majority report will undoubtedly assume that regu- 
larization of the market will provide full-time employment for the 
mine worker. This Avould Ix} a gross misapprehension. For a study 
of the l)est available material shows clearly that had avail a1>le labor 
been utilized to a reasonable extent during the year following the 
armistice the output would have been far in excess of the market 
demands. That this unfortunate condition has long exiNted in the 
bituminous coal industry is a well-known fact. Mr. Francis Pea- 
body, who was chairman of the coal committee of the Council of 
National Defense during the war. recently stated to a Senate com- 
mittee that the total cost of production of coal, as well as the earn- 
ings of the miner, depend entirely upon continuous work, and that the 
cost of his mines is affected by irregular operation to the extent of 
between 50 and 60 cents a ton. Comm.enting further on the existing 
irregidnrity of operation, Mr. Peabody makes the sti'iking statement 
that the physical capacity of the mines themselves throughout the 
United States is sufficient to j:)rotluce 40 per cent more coal than the 
possible demands of the coimtry. 

This may he expressed in another way. AVitli an average of 'iO 
hours of operation per week the industry can meet all the recpiire- 
ments of the normal market. This is no hypothesis. It is based upon 
th^ figures given in the weekly reports of the United States Geologi-al 
Survey. The extraordinary demands of the war yeai's were met with 
an average operation of between 30 and 40 hours per week, the higlu'st 
figure being under 42 hours x^t^"!' week; while the normal needs of the 



84 EEPORTS OF BITUMINOUS COAL COMMISSION. 

country for the year folloAving the armistice were met by an actual 
operation averaging under 30 hours per week. In other words, the 
voluminous suggestions for regularizing fhe market put forward in 
the m-ajority report will amount to a regularizing of the 30-hour 
week, or to an aw^ard of a 5-day week, with 6 hours per day. 

But here lies the evil of the suggestion carried in the majority 
report. While actually recommending readjustments which will 
mean such a regularization of the 30-hour average week actually 
necessary to meet the production requirements, it avowedly awards a 
48-hour week and of course bases its wage award upon that number 
of v/orking hours. In other words5 while verbally accepting the prin- 
ciple of the living wage, it actually fails to afford the worker an op- 
portunity to earn this living wage which is based upon a hypothetical 
48-hour week. This arrangement of the award closely approximates 
hypocrisy. For it will lead the public to accept the wage award 
as just on the supposition that the bituminous mine worker will 
have an opportunity to work as many hours per week as his fellows 
in other industries. A supposition which we have shov\^n by elabo- 
rate statistics, drawn from the most authoritative sources, to be 
utterly false. What does this suggestion of the majority report, 
then mean? It means simply the regularizing of unemployment^ 
its distrihution throughout the year so that it loiU he Jess noticeable. 
It is because of this superficial approach to the solution of an evil 
in the industry, vital to every man employed, to every family, and 
to the consumers who pay the price, that the mine workers em- 
phasize the importance of a study from the point of view suggested 
by Mr. Hoover — an approach to this " diseased " industry with a 
view to a fundamental cure. 

It is because the wage award suggested in the majority report will 
be conceived and judged upon the basis of a 48-hour week that we 
wish to stress the present improbability of a week of more than 30 
hours whatever the award may say. This discrepancy between the 
week actually awarded and the week Avhich will be worked is the true 
measure of the unfairness of the award. For it is a measure of the 
amount which the mine workers w^ill apparently receive and will 
not actually receive. It is this failure of the m^ajority report to deal 
w^ith actual conditions that requires comment. If the American mine 
Avorker produced only as much coal as his fellows in other countries, 
he would have full employment, for it would require more hours to 
produce the amount required by the country. As it is, the American 
mine worker produces more tons per year than his fellow in any 
other country in the Avorld. This is clearly substantiated hy data 
compiled hy the United States Bureau of Mines. And his great 
productivity brings him not shorter hours with correspondingly 
higher pay^ in order that he may earn a living loage^ but unenvploy- 



REPORTS OF BITUMINOUS COAL COMMISSION. 85 

mcnt and an accich nt chath rate fwhe i(s hiyh as the average for 
these same other eountrles. 

In the face of these facts we feel that the re(juest that the actual 
facts of the industry be recognized and that the ^vaire increase be re- 
hired to the fact that an averaoe Aveek of »)() hours will produce all 
the coal required by the country is fundamentally just. Failure to 
fare a situation in whieh 30 hours a week will he averaged whether 
it is officially sanctioned or not is rmrehj juggling with solutions in 
order to avoid the true issue. 

The Request for a Shorter Working Day. 

In other words, the recoinniendation of the majority report under 
the caption. "The six-hour day and the live-day week," is entirely 
equivocal. The authors state that they were influenced in arrivin^y 
at their decision '' by the fact that steady work on the part of all 
workers is urgently required by the entire world during the period of 
reconstruction and reorganization when the enormous destruction 
and disorganization wrought by the World AYar in all countries and 
atfecting all indu:<tries mu>t be counteracted by unusual industry 
and perseverance. To make any restriction affecting the output 
would be an economic crime."' Who. we ask, is it, then, who is limit- 
ing the average work of the mine workers to 30 hours per week? 
The majority report makes such statements despite its former recog- 
nition of the fact that the American market will absorb only five- 
sevenths of the full time output of the industry, and despite the 
following earlier statement : 

It is not to lie oxpectod that exports of coal will increase sufficiently to 
absorb a jterceptible i»roi)ortion of the gap between the demand for coal 
atid the <^apacity of mines, as our shipping terminal faciUlics arc such 
that not more than 2-).000M00 tons of coal a year can at present be ex- 
ported. 

In contrast with such sham and hypocrisy Ave feel the importance 
of a frank acceptance of the reality of the situation. The request for 
the recognition of a shorter working day has been misrepresented 
as a movement for the reduction of the working period, when in 
reality it is a request for recognition of what actually exists and 
tLe adjustment of wages on that basis. The demand for recognition 
of the shorter working day is, in fact, a demand for the opportunity 
U) earn a living wage; it is a demand that the public understand 
rlearly that rates awarded must be understood in terms of a 30-hour 
v^eek and not of a purely hyi:)othetical 48 hours which is never at- 
tained. Increase in the earning power of the mine worker is almost 
as dependent upon his securing a greater and more regular oppor- 
tunity to work and to earn as it is upon an increase in his rates of 
pay. With inadequate rates of pa}' in the face of lack of opportunity 
to work, the position of the mine worker has grown desperate. 



86 EEPORTS OF BITUMINOUS COAL. COMMISSION. 

The Shorter Working Bay in the Mines of England. 

In addition to tlie actual fact of the 30-hoiir week proved by the 
figures of the Geological Survey, there is another cogent reason why 
we can not concur with the majority report in its opinion that the 
demand for recognition of this fact is " clearly uneconomic." In 
theory it may be, but in practice in England this has not proved to 
be the case. 

Official reports from one of the oldest and most important coal- 
mining districts of England, where tens of thousands of miners havfi. 
been for years working under agreements limiting their work at the^ 
coal face to less than six hours a clay, prove conclusively that the 
request for a six-hour day should be regarded neither as extraor- 
dinary nor as bad economics. In fact, this short working day has 
improved so many conditions in the industry that the employers 
themselves would not go back to the longer day. 

These facts are embodied in the reports of two British govern- 
mental commissions appointed to inquire into the coal industry. 
They went at the problem with praiseworthy thoroughness, and as a 
result their reports are a mine of information. Such thoroughgoing 
studies of the industry are needed in this country, and it is to be 
hoped that in the future it will be taken up in an exhaustive way 
from the superficial and equivocating condition in which the ma- 
jority report of this commission has left it. 

According to Mr. Guthrie, secretary of the Durham Operators' 
Association, the c^greements provide that the hours shall not exceed 
seven from the time of the last man going down to that of the last 
man coming to the surface at the end of the shift. According to his 
statement this means 5 hours and 20 minutes as the average time at 
the face in Durham and approximately 6 hours in Northumberland. 
This means work from one to two hours less per da}^ than in other 
districts in England. Yet tables accompan3dng these reports show 
that the production of coal per man per shift is well up to that for 
the rest of England, and that the cost of production per ton is no 
higher. This led the coal miners' eight-hour day committee to re- 
port as follows : 

We can not but conclude that an hour's work of the men employed in 
east and west Scotland, Northumberland, and Durham, where the hours 
of work are shortest, is more effective than it is in Lancashire and south 
Wales, where the hours are longest. The tables do not show a uniform 
proportionate correspondence, but they do show son^e general relation 
between short hours and efficient work. 

In addition to this interesting fact of sustained production we 
find tables in the appendixes of these reports showing that there is 
greater regularity of work in the districts where the shorter hours 
are worked. To quote a brief extract from the report of the eight- 
hour day committee : 



REPORTS OF BITUMINOUS COAI. COMMISSION. 87 

Bui after makiug due allowauee for these loeal encouragements of the 
practice of abstention from work, we find that the statistics that we have 
collected of absenteeism give grounds for believing that upon the whole 
shorter hours of the working days do at present conduce to greater regu- 
larity of attendance at the pits in the distrirts in which the shorter lumrs 
are worked. 

Ami finally wo fiiul from those same voluminous reports that the 
rate of mortality is lower and the standard of health hiaher in these 
same districts where shorter hours are worked. Aceordine: to the 
committee already quoted : 

The tables put before us show that of the counties for which separate 
statistics are available the lowest mortality (G75) occurred in Derbyshin^ 
and Nottingham, counties in whidi the hours worked are below the average, 
and the highest (1,WG) in Lancashire, where they are longest. The tables 
further .show that in Lancashire, Monmouthshire, and south Wales alone 
the districts in which hours are longest, did the mortality from all causes 
exceed that of ** all occupied males." and that it is only in Lancashire that 
there is an excess due to " other causes than accident." 

The information available which would enable us to form a .iudgment 
as to the probable effect of the limitation of the working day upon the 
health of coal miners is of the scantiest nature, but so far as tlie evidence 
goes it tends to show that the standard of health of the workers is lowest 
in those districts where the longest hours are worked. 

This last is of groat importance to the mine worker. For a large 
numher of investigations all point to the same conclusion — that the 
hazards of the miner are greater than those of any other important 
industrial occupation. The experience of the leading industrial insur- 
ance companies has shown that the bituminous coal miner has a 
death rate 32 per cent above the average for all other industrial 
occupations. Representative life insurance companies will accept a 
miner only if he pays rates of risk 16 years above his actual age and 
then will permit him to have no cheaper policy than a 20-year endow- 
ment. The mortality experience of tlie Metropolitan Life Insurance 
Co. for the years 1911-1913 showed that 63 out of every 100 coal miners 
who died between the ages of 15 and 24 died a violent death; that 
44 out of every 100 between the ages of 24 and 34 years died an 
accidental death: while 31 out of each 100 l)etween the ages of 35 and 
44 years died as the result of an accident. 

As a matter of fact the American miner is approximately twice as 
liable to death by accident as is the mine worker of the other coun- 
tries of the world. It is admitted that this is due to his greater 
jn-oductivity. And the conclusion seems to be indisputable that 
justice requires that this be counterbalanced by some such ameliorat- 
ing conditions as those prevailing successfully in large regions in 
England. 

Employers in England admit that the standard of citizenshi)) is 
higher among the miners where shorter hours arc worked. They 
ap-ee that the mines in the short-hour districts arc worked much more 
scientificall}'. And a representative of the Durham Coal Owners' 



85 EEPOKTS OE BITUMINOUS COAL COMMISSIOJ^. 

Association, when asked whether he thought it would be economical 
to go back to the longer working day answered, "No; I do not." 

On the basis of such facts, carefully studied, the British coal in- 
dustry commission made recommendations which have led to the 
establishment of the seven-hour day throughout the mines of Eng- 
land, with the probability that when the effects on national produc- 
tion have been carefully watched by experts, the industry will go on 
to the six-hour day. 

The Cost of Excessive Capital When Unemployed. 

In general, the vvhole question of shorter hours is a craestion of 
economy, of human economy. We concur with the majority report 
in its statement that under existing conditions "a labor supply, 
sufficient to meet the needs of the rush season, is excessive during 
the rest of the year, part-time employment results, and the Nation 
will ultimately have to pay in its fuel bills the cost of maintaining 
this larger army of only partially employed workers.*' But we 
maintain that this is a very partial and one-sided statement of the 
case. What of tlie excessive capital investment which is employed only 
part time during a great part of the year, and for the maintenance 
of which the Nation ultimately pays in its fuel bill. The majoTity 
report has carefully provided that lalor shall l>e paid on the suj)- 
position that it icorks an average Jf8-hour iveek, and the public tcill 
call it a fair loage on that hasis. The difference hetiveen the hypo- 
thetical Jp8-hour iveek and the actual average 30-hour loeek rep- 
resents a part of the year for which the majority report makes no 
provision so far as lahor is concerned. On the other hand^ it ignores 
the fact that the Nation is called upon to pay profits and maintenance 
to capital on the hasis of its normal eriiployment heing a 30-hour 
week. Capital is to get its full normal 7'e /mine ration, although it 
■works hut 30 hours per loeek on the average. That is to say, the 
majority report tacitly awards the companies a 30-hour loeek while 
denying it to the mine loorkers. 

This fact came out very interestingly because the operators recog- 
nized that the request for a six-hour day five days a week was in 
reality a request for an opportunity to earn a living wage. In 
other words, recognizing that the argument that granting the re- 
quest would limit production Avas a specious argument they denied 
the principle that labor was entitled to a living wage if the country 
needed its services only part time. A representative of the operators 
put the question in this way : " Must the workers in the bituminous 
coal industry be maintained whether they work or not ? *' 

It was indeed fortunate that the operators raised the question, 
for its implications are of great significance and there is danger 
that they would otherwise have been passed over. 



REPORTS OF BlTUMlXOrS COAL COMMISSION. 89 

The conclusion drawn by tlie o})erat(>rs was tliat if the country 
needed the mine workers only 212 days out of the year, it was under 
no obligation to pay them a livinc: wane for the full year. Let the 
mine worker £ro out and find a job somewhere else. In other words, 
the speaker implied tliat the public Avas under no obligation to give 
the mine worker sufficient annual earnings to maintain his family 
for a full year when it only needed his services for three-quarters 
of a year. 

This, of course, led naturally to a similar question in regard to 
the capital invested in the industry. Was the public under any 
obligation to maintain this capital, whether it worked or not? In 
other words, if a 30-hour week, as actually worked during 1919, 
was not to lie recognized for the mine workers, should it in e(]uity 
be recognized for the companies? For, obviously, when the mines 
were idle the capital invested in the mines was no more serving 
the public than were the mine workers. And yet, as a result o.f care- 
ful analysis of financial returns, found in the reports of the com- 
panies and in the report of the Federal Trade Commission, the in- 
teresting discovery vsas made that in paying the regular price for 
coal the public is paying the coal companies over $100,000,000 each 
year for periods when the companies are doing nothing for the 
public: that is. for periods when the public does not need their 
services. This is not the whole amount paid to capital in the coal 
industry during the year. It is onl}^ the amount paid for mainte- 
nance and profits during the actual days of idleness ; for capital in- 
vested in the coal industry expects the i)ublic not only to maintain 
it — that is, to pa}' its expenses — during these periods when it is un- 
employed, but also to pay profits for no services at all. 

The earnings of the wage earner are not given exclusive of the 
cost of maintaining himself and famih\ The question of a fair 
return to the worker is not based upon his profit over and above what 
it requires to maintain him as a serviceable member of industrial 
society. Applying this to capital invested in the coal industry, tlio 
full wage must naturally include maintenance, depreciation, and 
depletion charges, as well as the interest and dividends paid on stocks 
and bonds. The question raised by tlie operators was, therefore, 
found to involve the question whether the Nation is under any obli- 
gation to continue this wage to capital whether it works or not. 

The exhil'it presented l)y the mine workers shows that in the cost 
of each ton of coal are items of overhead and profit which continue 
whether the mines are working or not. Taking these items only for 
the period when the mines were idle in 1917. it was found that for tliis 
j eriod of idleness the public paid the coal operators approximately 
i;^ 144,000,000: that is, $225 per man employed. In the following year 



90 EEPORTS OF BITUMIN"OUS COAL COMMISSION". 

the total paid to maintain invested capital in idleness was approxi- 
mately $128,000,000, or $200 for each man employed. And it must 
be remembered that none of this went to the mine workers, and that 
they were, during these periods, without opportunity to earn a wage. 

It was also discovered that the public is to-day maintaining in idle- 
ness at a regular charge included in the prices which it pays, large 
investments in coal la.nds which were acquired by the coal companies 
for deferred use in order to gain a monopol}^ And, furthermore, the 
Nation is paying for theJmaintenance of these natural resources not 
on the basis of their original cost to the original companies but on 
the basis of the enhanced value given to them in terms of the present 
market, largely due to the monopoly obtained by these purchases. 

In view of these facts, the answer to the question must apply to 
capital as well as to labor, to the companies as well as to the mine 
workers. Should it be decided that the public is under no obligations 
to maintain its servants during periods when they are not actually 
serving, it would immediately be clear that when the public pays 
only for the maintenance of the companies during the portions of the 
year when they are actually working, there will remain over a ver}^ 
large annual fund out of which may be met the cost of the living 
wage asked by the mine workers and of the shorter working day as 
a means to greater regularity. 

Such a question leads to other questions of the same order. For 
instance, it would be an interesting situation were a country to treat 
its soldiers as it does its miners, maintaining them only when there 
was specific fighting to be done. Surely, in the last analysis, it is not 
so much a question of obligation as it is of wisdom, of farsighted- 
ness. There can be no question as to the vital importance to the 
country of maintaining in a state of well-being a large body of its 
population which is performing a difficult an essential service. 

This is the gist of the matter. It is not a question to be settled 
in terms of economic theory, or by the use of current and misleading 
economic platitudes. The maintaining of an important part of the 
industrial population in a state of well-being to-day requires that the 
actual worldng hours dictated to them by the nature of the industry 
be recognized as a matter of fact, not as a principle, in order that on 
this practical basis their ability to earn a living wage may be gauged. 
Irregularity of employment is due to overproduction. Eegularity 
attained by the methods recommended by the majority report would 
simply regularize the short working period required to satisfy the 
needs of the country. The mine workers only ask the ojoportunity 
to earn a living wage, and we feel that a truly thorough study of the 
industry would find the circumstances substantially as discussed in 
this report. 



KEPORTS OF BITUMINOUS COAL COMMISSION. 91 

Inability to Concur with Partial Statement of the Case. 

In the face ol' the^o facts we fool that wo can not concur with the 
majority report in disniissing this fundamental question with a notice 
so casual that it is almost insultino- to the men who have placed so 
much faith in the President's commission. The scant three typo- 
written sheets with which the majority reix)rt dismisses a question 
vital to the lives of the mine \\'orkers hardly justifies the following 
statenient with which the section is prefaced : '* We have gone fully 
into the mine workers" demand for a six-hour day and a five-day 
week '^ '•' '•'." 

Mr. Hoover, as already quoted, has stated that there lies in tlie 
recognized intormittoncy of employment in the bituminous industry, 
" a long train of human misery.'* With tlire« typewritten pages the 
plea of half a million human beings to be relieved of this train of 
human misery is dismissed. In the face of the fact that the mine 
workers are actually averaging approximately a 30-hour week, the 
majority report " can not help but feel that S hours a day is not too 
much to work under pi'osent circumstances '" " ''. Therefore, our 
conclusion is that, under all conditions, the eight-hour day should be 
maintained." 

The very wording of this, wliich is the substantive part of the 
award is equivocal. It exhibits the casual way in which the problem 
has been treated. For, on the one hand, a real eight-hour day is not 
general throughout the industry even in theory, while on the other 
hand it exceeds that which has been demonstrated as possible m 
practice. On neitlier one side nor the other does the statement con- 
form with the facts which have been placed before the commission. 

In the interest of the Nation as a whole, hoAvever, we are inclined 
to go much more than halfway toward meeting the majority report 
in this matter. In doing this, we can not fail to point out that so 
casual has been the " careftil " consideration reflected in the majority 
report that it has utterly failed to provide any means of enforcing 
the eight-hour day. Their lame statement, then, amounts to a mere 
i>ious hope. 

FuDitive Overtime. 

We feel, therefore, under ol>ligation to cover this point. Closely 
as.sociated with the request for a shorter working day, whether that 
1/0 of six. seven, or eight hours, is the request for punitive overtime, 
;'. request which has been completely ignored in the majority report. 
Punitive overtime is recognized generally as the accepted means of 
securing strict adherence to the .standard working day. Here again 
in an industry where unemployment constantly results from overpro- 
duction, it is im^wrtant to have safeguards against the extension of 
the working day. 



92 EEPOKTS OF BITUMINOUS COAL COMMISSION. 

That this request is not extraordinary is proved by following 
survey of the practice in this country. It is a practice current in 
practically all the organized trades, such as the building trades, '- 
metal trades, laundry workers, granite and stone trades, bakery 
trades, cigar makers, stationarj^ fireman, glassworkers, hatters, paper 
makers, photo-engravers, printers, and printing pressmen. 

Punitive overtime is almost universal in the basic industries of ih6 
country except in the coal mines. It is paid in all of the four prin-C 
cipal centers of the men's clothing industry, wdth over 100,000', 
Avorkers. 

The shipyards of the country, with approximately 300,000 em- 
ployees, have adopted the practice. Even the railroad freight serv- 
ice accepted the practice, effective in December last, and practically 
all railroad employees, or approximatel}^ 2,000,000 wage earners, 
now operate under this rule. The newsprint paper industries, so far 
as 35,000 or more employees are concerned, and the lumber industry 
of the Pacific coast, with 50,000 emplo3^ees, pay punitive overtime 
as a result of war-time experience. 

The packing-house industry, in which are employed 100,000 wage 
earners, was required to pay its employees time and a quarter for all 
work over 8 hours and time and a half for hours in excess of 10 hours 
per day. Judge Alschuler, in making the awards in May, 1918, de- 
clared the higher rate served to deter employers from unnecessarily 
requiring emploj^ees to work at such times, but if such work is neces- 
sary it serves also to compensate the employee for the added sacrifice 
he makes in so working at times when he should have his liberty. 

While punitive overtime is not paid in the steel industry as a whole, 
it is observed in the steel mills of Colorado Fuel & Iron Co. at Pueblo, 
Colo. In the case of the United States Steel Corporation the basic 
8-hour day Avas recently put in force, and the men Avere paid for 8 
hours' Avork as much as they had previously been paid pro rata for 
the remaining 3 hours of the day, as the men are still required to work 
11 hours during the day shift and 13 hours during the night shift. 

One of the most remarkable instances of the application of punitive 
overtime is that found in the merchant marine, presumably one of the 
last occupations where it would be practiced, Avhere 270,000 employees 
in the service have regularly been paid overtime as a result of long- 
standing trades-union practices, and Avith the confirmation and ap- 
proval of the United States Shipping Board. The practice in the 
merchant marine affects all classes of employees — seamen, licensed 
officers, engineers, and galley and mess-room employees. 

The merchant marine service of Norway, Sweden, and Italy may 
be instanced as examples of the practices in foreign countries. 

In the street raihvay service of this country the payment of puni- 
tive overtime is gaining ground. It is observed in Boston and prac- 



REPORTS OF BITUMINOUS COAL COMMISSION. 93 

tieally all of tho cities of Ma>sacliusctts. The new ag-iveiiients in 
New York and Chicago provide for it. It is prevalent in Newark 
and Patcrson, N. J., and in other cities in that State. Detroit and 
Cleveland observe the rnle. The practice is to pay from time and 
a quarter to time and a half. 

The decisions of the National War Labor Board respecting- (he 
payment of overtime were fairly uniform. They fixed time and a 
lialf for all overtime, with doul)le time for work on Sundays or 
holidays. The board al.»o awarded double time for work on Satur- 
day afternoons and for such work late at night by those who were 
not night-shift men. In one case the joint chairman awarded tunc 
and a quarter for work between S and 10 hours and time and a half 
for work over 10 hours, while in another case they awarded time and 
a half and double time for the same work, respectiveh\ 

State legislation in Oregon provides for punitive overtime for 
work done in excess of 10 hours, limiting such v^■ork to emergency 
v.ork. In the case of work by the State, county, and other govern- 
nuntal divisions, punitive overtime is cliVctive after eight hours of 
work per day. A law somevN-hat similar to the last named is also 
effective in the State of AVashington. 

Our War and Navy Departments during the period of war required 
the payment of punitive overtime for all work in excess of eight 
hours, stating : '' The theory under which we pay time and a half 
for overtime is a recommendation that it is usually unnecessary and 
also undesirable to have overtime. The excess payment is a penalty 
and intended to act as a deterrent."' 

The general practice under the rnininunn-wage legislation, whi^h 
as a rule affects women and children only, is to discourage and limit 
overtime as much as possible. AVhen overtime is necessary, com- 
i;>ensation is required someAvhat in excess of the normal rate of com- 
pensation. 

I^ither by law or administrative order, punitive overtime is re- 
fjuired to be paid to those persons coming within the scope of the gen- 
eral eight-hour laws in the following co'untries : Finland, France, 
Ecuador. Poland. Austria, and Portugal. The eight-hour bilL now 
before Parliament in Great Britain, specifics not less than time and 
a quarter as the punitive overtime. 

The International Labor Conference, at its recent meeting in 
Washington, when it recommended the adoption of a general eight- 
hour day by the countries which are meml^ers of the international 
labor organiaztion. also recommended the payment of time and a 
(juarter. for all overtime work. 

In the voluntary agreements and in the lunding awards of the 
arbitration courts or wage boards of Australia and New Zealand, 
all overtime in excess of 8 hours a day, or 40 hours per week, 



94 EEPOKTS OF BITUMINOUS COAL COMMISSION. 

must be paid for at a higher rate of remuneration. Such a re- 
view of the industrial practice in regard to overtime tends to 
show that the mine workers, in asking for the establishment of puni- 
tive overtime, are merely asking that their industry be brought into 
line with the general industrial progress of the world. 

A Conservative Ke commendation. 

If we are to take at all seriously the majority recommendation 
concerning the eight-hour day, we must be assured : 

(1) That it shall be a real and not a sham eight-hour da3\ 

(2) That punitive overtime shall be established, as a means to its 
enforcement. 

With a view to arriving at a settlement which vrill spare the coun- 
try chaos in an essential industry, while standing firmly upon the 
justice of the recjuest that the shorter Avorking week now in actual 
practice be regularized, we put forward as the basis for compromise 
a suggestion which will make definitive the incomplete recommenda- 
tion of the board concerning the eight-hour clay. 

In order that the mines shall be allowed full time to adjust them- 
selves to the change we recommend that the present working hours 
of mine employees continue in effect until March 31, 1921 ; and tliat^ 
'beginning April 1^1921^ the maximum Jiours for employees shall not 
exceed eight hours underground per day and six days per weelc. ^Ve 
further recommend the establishment of punitive overtime as a 
means to enforcing this standard day. 

This is merely a fair interpretation of the recommendation of the 
majorit}^ report which, as expressed, was so hopelessly vague as to 
mean nothing. It was manifestly unfair to put forward such a 
recommendation without at the same time making plain to the public 
that the miner's day is at present much over eight hours. He works 
at the coal face 8 hours, but he is down in the mine 9 or 10 hours and 
sometimes more, for many mines are deep and the galleries long. 
Which means that the mine worker must travel many minutes, even 
hours, below ground, far from the light of day, subject to all the 
hazards that prevail in the industry. It is no more than fair, as well 
as strictly conservative, to ask that the eight-hour day be made a real 
one, an eight-hour day from the time the miner leaves the surface 
until the time when he returns to the surface again. This will merely 
put into effect in the bituminous industry what is to-day recognized 
as just in tlie majority of industries in the enlightened countries of 
the world. 

In our attempt to bring the matter before the public in this light 
we are encouraged by the statement of President Wilson, in his re- 
marks urging the Adamson law, which may be quoted in part as 
follows : 



REPORTS OF BlTTMIXOrS COAL COMMISSION". 95 

Bocauso a man doe>? bettt^r work wiihiii oi^lit hours than ho (loos withhi 
a more oxtondod day, and that tho \vholo thoory of it, a theory Nvhich is 
sustained now by abundant oxporionco, is that his ollk-ionoy is incroasod. 
his spirit in his worlv is improved, and the whole moral and physical 
viiror of the man is added to. This is no lonj^er conjeetural. When^ it 
has bivn tried, it has been demonstrated. The Judiiment of society, the 
vote of every leiiislature in America that has voted upon it is a verdict 
in favor (»f tiie ei.^zht-hour day. 

The reasonable thinu to do is to errant (ho eijiht-hour day, not because 
the men demand it, luit because it is rij:;ht, and let me get authority from 
Congress to appoint a conunission of as impartial a nature as I can choose 
to observe the results and report upon the results in order that justice 
may in the event be done the railroads in respect of the cost of the experi- 
ment. 

In brief, tlioii. wo arc willino- to <xo iiioiv than halfway in order 
to secure a workin<r l)abi8 for the next two years, deferrino- to a 
tutiire day and more thorotioh study jndirinent upon the iv(|H(.\st 
that ac-tiial working hours in the industry be recognized. Ibit we 
can not refrain from commenting upon the injustice to the mine 
workers involved in the summary dismissal of the whole subject 
without any attempt to embody in the report facts which woidd 
inform the public as to the true hours worked by the mine workers 
and as to the real nature of the so-called eight-hour day. The pii))- 
lic has a right to feel insulted at being thus fed with hand-picked 
material, predigested, as it were, in order that its judgment may be 
furnished ready-made. The phrasing of the final award concern- 
ing the eight-hour day is especially to be condemned. It is so 
vrorded as to have all the appearance of being a liberal recommenda- 
tion of the eight-hour day, when in point of fact the interpretation 
of ** maintain " would surely result in a continuance of the pres- 
ent inhuman conditions in the bituminous industry. 

RELATION OF LABOR COSTS TO TOTAL COSTS, PROFITS, AND PRICES 
IN THE BITUMINOUS COAL-MINING INDUSTRY. 

A .'.urvey of the coal-mining industry demonstrates conclusively the 
fallacy of the assiunption that wage increases have been the primary 
factor in the advance in the price of coal over prewar prices. It is 
equally erroneous to assume that the proposed wage increase now un- 
der consideration for bituminous mine workers must necessarily be 
followed by a corresponding increase in the co.st of coal to the con- 
-imier. The utter falsity of this position is clearly shown by a review 
of the Federal Trade Commission's recent report on the coal industry 
and otlior nflirj.-t] data lioaring on the production and distribution of 

An examination of the-e data shows that the increase in the retail 
price of bituminous coal since I^'IO has been from three to four times 
as great as the increase in labor costs during the same period, and that 
the operator's share in the proceeds of the coal industry has increased 



96 REPORTS OF BITUMINOUS COAL COMMISSIOiT. 

from 75 to 400 per cent, while the distributive share of labor has 
actually decreased. 

In the central Pennsylvania coal field, for example, out of every 
dollar received by the operator in 1916 for his coal, 66 cents went to 
labor, while 6 cents was retained by the operator as his profit. In 
1917, labor received only 46 cents out of each dollar, while the oper- 
ator retained 32 cents. This was a decrease in labor's share of 30.3 
per cent, and an increase in the operator's share of 433.33 per cent. 
In 1918, labor's share of each dollar Avas 35 cents, a decrease over 
1916 of 16.7 per cent, while the operator's share was 25 cents, an in- 
crease over 1916 of 316.7 per cent. 

Again, in the southwestern field, labor's share of the dollar in 1916 
was 60 cents, and in 1917 it was only 39 cents, a decrease of 35 per 
cent, Avhile the operator's share in 1916 was 13 cents, and in 1917 it 
was 42 cents, an increase of 223 per cent. In 1918, labor's share was 
55 cents, as against 60 cents in 1916, a decrease of 8.33 per cent, 
vrhile the operator's share was 24 cents as against 13 cents in 1916, 
an increase of 84.6 per cent. 

Thus, there are established the f olloAving facts : 

(1) That increased coal prices were not due to increased labor 
costs, but, on the contrary, were due largely to increased profits 
cxticted by the operators; and 

(2) That increased Avages to labor were more than offset and ren- 
dered less than negligible by the increased efficiency and increased 
productivity of labor. 

In 1917, the operators in the central field could have sold their 
coal for 20 per cent less than they did exact for it, and still have 
retained twice as much out of each dollar they received as they re- 
tained in 1916; in 1918, they could have reduced the price 13 per cent 
and still had a share twice as large as they had in 1916. 

In 1917, these operators could have given the mine workers a wage 
increase of more than 43 per cent, without increasing the price of 
coal, and still have retained tAvice as much out of each dollar as they 
retained in 1916; in 1918, they could have made the wage increase 
almost 24 per cent, Avithout increasing prices, and still have had their 
share in each dollar twice AA;hat it was in 1916. 

Additional data contained in the report of the Federal Trade Com- 
mission and the reports of the United States Bureau of Labor Statis- 
tics may be cited further to prove that increased coal prices were not 
due to increased wages granted to, or exacted by, the mine vrorkers. 

Although labor costs per ton of output in the soutliAvestern Penn- 
sylvania coal field, for example, increased 54 cents per ton or about 
66 per cent in 1918 oA^er 1916, the proceeds to the operator per ton 
of output, for this period, increased about 250 per cent or more than 
double the increase in the cost of labor. During the same period the 



EErOETS OF BITUMIXOUS COAL COMMISSION. 97 

wholesale price of coal advanced $'20 or about three times the in- 
crease in labor costs and the retail selling price increased $2.19 Avhich 
was more than fonr times the amount awarded to labor. 

In the case of the central Pennsylvania coal fields the figiires are 
ecjually as conclusive. In this district there was an advance in 1018 
over 191G in labor costs of 80 cents, or 87 per cent, in total f. o. b., 
mine costs of $1.05, or 79.6 per cent, and in sales realization of $1.75, 
or 1'25 per cent, and an increase in the operator's margin of protit 
of 70 cents, or 875 per cent. The increased labor cost in 1917 over 
1916 was 41 cents, or 44.5 per cent, whereas the increase in the opera- 
tor's margin in 1917 over 1916 was 84 cents, or 1,050 per cent. 

It may be noted that in 1917, had the operators in this field been 
content to exact a margin of protit only three times as great as their 
margin in 1916, they could have increased the wages of the mine 
workers more than 50 per cent without increasing the price. In 
1918. with a margin of profit three times as great as they received 
in 1916. these operators could have reduced the price of coal more 
than 16 per cent, or they could have increased the mine workers' 
wages over 31 per cent without an advance in the price of coal. 
These operators, however, exacted and received a margin of profit 
in 1917 ten and a half times as great as they received in 1916, and 
in 1918 almost nine times as great. 

Xo further evidence should be necessar}^ to demonstrate whether 
higher coal prices have been due to wage payments to the mine 
workers or to the profits of the operators. 

In tills connection, howeyer, it may be stated that under prewar 
conditions a margin of 8 cents a ton was regarded by the operators 
as normal and acceptable, while a margin of 10 cents was regarded 
as extremely gratifying. This would indicate that a margin of not 
to exceed 25 cents should have satisfied the operators during war 
times, while on the contrary their margin soared to 92 cents in 1917 
and to 78 cents in 1918. 

In the Illinois coal fields, increases in labor costs per ton of output 
in the various districts in 1918 as compared with 1916, ranged from 
63 cents to 75 cents. The amounts realized by the operators from the 
sale of coal during the same period show increases which ranged 
from J^1.03 to $1.41, and in most instances were more than double the 
advance in labor co.sts. As contrasted with the increase in the retail 
price of bituminous coal, the advances in labor costs ranged as low 
as 22.8 per cent and were less than 35 per cent, in each instance, 
of the advance of $2.19 per ton in average retail prices in 1918 
over 1916. 

In district No. 1 of the Illinois coal fields, for example, labor co.sts 
per ton of output increased from $1.48 in 1916 to $2.23 in 1918, or 
109222^—20 7 



98 EEPOETS OF BITUMI]:^OUS COAL GOMMISSIO]!^. 

onl}^ 75 cents as compared with an increase in sales realization from 
$1.87 to $3.19, or $1.32, and an advance with operator's margin from 
3 cents to 42 cents. This increase in labor costs, it should be noted, 
represented only 34 per cent of the advance in retail prices during the 
same period, which increased from $5.61 to $7.80, or $2.19, as pointed 
out above. 

In district Fo. 2 labor costs advanced from a minimmn of $1.08 in 
1916 to an average of $1.75 in 1918, an increase of over 67 cents as 
compared with an increase in sales realization from a minimum of 
$1.31 to an average of $2.72, or $1.41, and an increase in the opera- 
tor's margin from a minimum of 3 cents to an average of 42 cents. 
In this district the increase in ia,bor costs represented only 30.6 per 
cent of the advance in retail prices in 1918 over 1916. 

In district No. 3 there was an advance in labor costs from 87 
cents in November, 1916, to $1.37 in 1918, an increase of 50 cents as 
compared with an increase in sales realization from a minimum of 
$1.13 in 1916 to an average of $2.23 in 1918, or $1.10. In the case of 
the operator's margin there was an increase from a minimum of 1 
cent in 1916 to an average of 46 cents in 1918. 

In district No. 4, labor costs increased from 80 cents in 1916 to 
$1.35 in 1918, or 55 cents, while sales realization during the same 
period increased from $1.12 to $2.15, or $1.03, with an increase in 
margin from 10 cents to 40 cents. 

In district No. 6 labor costs advanced from a minimum of 85 
cents in 1916 to an average of $1.48 in 1918, an increase of 63 cents, 
as compared with an increase in sales realization during the same 
period from $1.07 to $2.42, or $1.35, and in the operator's margin 
from 1 cent to 45 cents. 

As contrasted with the increase in the retail p'rice of bituminous 
coal, it will be noted that the increase in labor costs in districts 
Nos. 3, 4, and 6 represented only 22.8 per cent, 25.1 per cent, and 
28.8 per cent, respectively, of the advance of $2.19 in average retail 
prices in 1918 over 1916. 

In the Illinois fields it is also found that the share of labor in 
each dollar of sales realization decreased, while the share of the 
operator invariably increased. For example, in district No. 4, la- 
bor's share in the dollar dropped from 72 cents in 1916 to 63 cents 
in 1918, a decrease of 12.5 per cent, but the operator's share in- 
creased from 9 cents to 19 cents, or 111.1 per cent. In district No. 
1 labor's share decreased from 79 cents to 70 cents, or 11.4 per cent, 
as compared with an increase in the operator's share from 2 cents 
to 13 cents, or 550 per cent. 

Incontrovertible evidence of the enormous earnings of bituminous 
coal operators and the most complete exhibit of their profits, is to 
be found in their tax returns to the United States Treasury De- 



KEPOKTS or BITUAIIXOUS COAL COxMMISSIOX. 99 

partment. These were sent to the United States Senate in response 
to Senate resohition 253 and were, thereupon, published as Senate 
Document Xo. 259, Sixty-fifth Congress, second session. These re- 
turns, together with those for the year 1918, as well as the returns 
of 32 companies cM^llected from financial manuals, indicate that the 
coal companies have passed all increased production costs and their 
income and excess profits taxes on to the public, and have then still 
further increased the price of coal so that they might retain more 
than twice their normal income. 

PROFITS OF BITUMINOUS COAL COMPANIES. 

The majority report deals with this subject very briefly. As a 
matter of fact, considering the important bearing which the ques- 
tion, whether or not the coal operators realized large or small rcturiis 
on their operations, has upon the entire controversy, it is apparent 
that this matter has been lightly touched upon and quickly passed 
with the evident purpose of leaving the impression that the profits 
of the industry have been at least nonnal during the war. The data 
submitted by the majority report, however, carrie-s itself the con- 
denmation of any such conclusion. 

The report fails to mention either the exhibit which the operators, 
during the hearings, submitted on this point, or that offered by the 
mine workers. The former consisted of a voluminous tabulation of 
the income, so-called net worth, of a large number of industrial 
companies which had profited greatly during the war. This was ex- 
hibited as offsetting the fact that the coal operators had mader larger 
gains during the war than previously. The earnings of the Pitts- 
burgh Coal Co. were included in this tabulation. This was the only 
coal company shown, the operators stating that because of its mag- 
nitude it was representative of the bituminous coal mining industry, 
and pointing to the fact that it had made only a comparatively .small 
percentage on its "net worth'' or capital stock. The utter fallacy 
of this contention was proven by the mine workers in their reply 
brief, as it was conclusively shown that, like the majority of the 
(•(Mporations floated at the ])eginning of the twentieth century, prac- 
tically all of the common stock of this company was given as a bonus. 
It is not necessary here to go into all of the details of the past finan- 
cial history of this concern, but the facts conclusively show that of 
tiie present $f58.0O0.OO0 capitalization of the Pittsburgh Coal Co. 
little more than half represents actual investment of money or of 
l»ropeity. This, of course, means that in order to arrive at the real 
return on actual investment, the dividend rate given in the report 
must be doubled. In other words, this great corporation earned 40 
per cent in 1017 and 20 per cent in 1918. 



100 EEPOKTS OF BITUMII^OUS COAL COMMISSION. 

Further than this, in order to furnish an apparent basis of value 
for this stock, the company, in 1917, had certain mining engineers 
in the Pittsburgh district revalue its holdings. This revaluation 
placed a book value upon the property several hundred per cent in 
excess of the actual cost of the property, which meant, of course, 
that without one cent of additional capital being subscribed or paid 
in, the " invested capital " or " net worth " of the Pittsburgh Coal 
Co. was increased several fold. 

The mine workers' exhibit on this point, of which the joint report 
likewise fails to make mention, was in two sections; the first was a 
tabulation of the financial statistics of every coal and coke company 
which published its annual statements. The income, capital stock, 
and tonnage of coal produced by each of these companies for the 
seven-year period, 1912-1918, where the same were obtainable, were 
shown in this compilation. All told, 32 companies, ranging in size 
from comparatively small to the largest bituminous coal corporation 
in the United States, were included. Some of these companies 
showed very large profits, others only average incomes, while some 
showed a net loss. The profits tabulated in the exhibit represented 
the net income of the companies after the deduction of all items of 
depreciation, depletion, amortization, sinking funds, royalties, inter- 
est on indebtedness, and Federal income and excess profits, as well as 
local, taxes. 

As the income and production figures for all companies were not 
available for each of the seven years, it was impossible to draw an 
accurate comparison of the actual increase in tonnage produced and 
the increase in profits realized. In 1917, hoAvever, the amount of 
coal produced by 31 companies of the group was obtained, the ag- 
gregate production in that year being 81,000,000 tons, or approxi- 
mately 14 per cent of the entire tonnage mined in the United States. 

The percentage of the total net income to the total amount of 
capital stock, and the amount of net income per ton of coal produced 
by all companies combined, for each year, is shown below. 



^ 


Per cent of 

net income 

to capital 

stock. 


Net income 
per ton. 


1912 . 


7.3 
9.0 

6.4 
6.4 
8.9 
21.3 
15.5 


Cents. 
21.0 


1913 


21.0 


1914 


21.0 


1915 . . 


18.4 


1916 


25,1 


1917 


67.9 


1918 - 


48.8 











7.6 
15.2 


21.0 






48.4 









KEPORTS OF BITUMIXOUS CO.VL COMMISSION. 101 

Tlie chief value of these figures is the contrast furnished between 
the percentage eained on capital stock and the net profit per ton 
produced for the prewar years, when normal competitive conditions 
fixed the price of coal, and the period of the war. It will be noted 
that these companies made an a\erage rate of profit during the three 
years, 1010-1918, exactly twice as great as during the prewar period, 
and this despite the fact that many of them had greatly increased the 
amount of capital stock during this time. The significant feature 
l)rought out here, however, is that this advance in earnings was not 
due to increased production, at least primarily, but to a greater 
proft taken from each ton of coal, llils Is evidenced hy the fact that 
the net Income per ton is .shown to be almost two and one-half times 
ijredter during the war period than previoasly. 

AVhen the representative nature of this group of companies is con- 
sidered, as well as the fact that it includes all companies publishing 
income statements, many of which have pursued this polic,y for a 
great many years, long before the war, it would seem to be sufficient 
evidence that profits in the bituminous coal-mining industry were 
much greater during the war than ever before. The fact that some 
few companies earned a low rate of return on their so-called invested 
capital or capital stock in 1917 or 1918 would seem to indicate that 
they were either overcapitalized or else were holding large amounts 
of coal land idle at the expense of the public for future profit or 
exploitation. 

The second section of the mine workers' exhibit on profits in indus- 
try, concerning which the majority report also makes no mention, is a 
compilation of data from Senate Document No. 259, entitled " Cor- 
porate Earnings and Government Revenue." The data presented 
therein are from income and excess-profits tax returns to the Treas- 
ury Department of approximately 400 corporations engaged in min- 
ing bituminous coal and the earnings of these companies were as 
follows in 1917: 



Before 

deducting 

tax. 



After 

deducting 

tax. 



Per cent of net income: 

To capital ••rtock I 45 

To invested capital , .' 38. 4 



31.6 
24.5 



The per cent of net income to capital stock in 1916 was 13.2. 

The companies included were considered by the Secretary of the 
Treasury as being representative of the industry. Sufficient data 
( oncerning corporations engaged in producing bituminous coal are 
not available from public records to afford a satisfactory basis of 
comparison with the figures contained in Senate Document Xo. 259. 
In the case of anthracite coal, however, a comparison cf figures col- 



102 REPORTS OF BITUMINOUS COAL COMMISSION". 

lected from other sources with those contained in Senate Document 
No. 259 is possible. 

Published financial reports of three large companies engaged in 
producing anthracite coal show a total capital stock of $47,411,000 
in 1917, while Senate Document No. 259 lists six companies the capi- 
tal stock of which was but $1,150,000 in 1917. 

Thus- it appears that the figures presented in Senate Document 
No. 259 are not representative of the anthracite coal mining in- 
dustry and they may not be representative of the bituminous coal- 
mining industry. 

The majority report contains a tabulation of the profits of 1,551 
bituminous coal companies taken from their income-tax returns for 
the year 1918, with the tonnage of coal produced as reported by 
the United States Geological Survey. The grouping in the table 
relates entirely to the percentage of profit to invested capital, and 
therefore only the total figures are of any real value in considering 
the same. 

It is noted that this group of companies, measured by the tonnage 
of coal produced in 1918, represents approximately 31 per cent of 
the bituminous industry. It is noticed also that the combined total 
of capital stock is $271,000,000, and it is therefore evident that this 
compilation from that standpoint is not as representative of the in- 
dustry as the tabulation submitted by the mine workers which was 
taken from the companies' published financial statements, the ag- 
gregate capital stock of the 32 companies there included being 
$278,000,000. 

The majority report cites the fact that 337, or 22 per cent, of the 
total of 1,551 companies reported net losses in 1918. To say the 
least, it Avas unfortunate that the Treasury Department, in furnish- 
ing these figures, did not go a step further and give the information 
with reference to all bituminous coal companies. There, then, could 
have been no doubt left in the minds of anyone as to the percentage 
of the entire industry that made profits in that year, and it would 
certainly have set at rest speculation as to what the actual profit .per 
ton of coal is. 

But the strangest feature of this portion of the majority report 
is the fact that only the per cent of net income to invested caq/ital 
was considered in arriving at the conclusion that a comparatively 
small return was realized by the coal operators in 1918. In the 
first place, the term invested capital is misleading, inasmuch as it 
rarely means the amount of money actually invested in the business 
or industry, but rather the book value at which the corporation car- 
ries its land and other property. This, of course, may be arrived at 
in a number of ways, or may be merely a surmise, or the result of 
an earnest desire to justify excessive profits or stock issues, as in 
the case of the Pittsburgh Coal Co. 



EEP0RT5 OF BITUxMlXOUS CO.VL COMMISSION" 



103 



Tlie conc'lu^ioIl feaclied in the majority report seems to be that, 
as the averaire percentage of income to invested capital for the 
1,551 companies was less than 10 per cent, profits in the bituminous 
coal-minino: industry durinof the 3'ear 1918 were moderate. That 
the Treasury Dei)artment did not take the same view of it is quite 
appaivnt from a glance at the ti^ure^s as presented in the table 
shown below. It will be noted that the total net income, before 
deducting taxes, and before deducting the Idsses of the 337 com- 
panies showing deficits, was 5^^01,000,000. Despite the fact that this 
amount only represented a little over 20 per cent of the total in- 
vested capital of the combined group, the Treasury Department 
required these corporations to pay $6,000,000 in income taxes and 
$36,800,000 in excess profits and war taxes; in all, practically 50 
per cent of their total profits. P'rom this it would seem that Mr. 
McAdoo was not at all impressed with vast amounts of money 
'* invested ''• in the coal-mining properties of these concerns, but 
took the position that they should base their profits upon the amount 
of caj^ital stock. Even after paying their taxes, it will l)e seen that 
these companies profited quite generously in relation to capital 
stock, the average, including the 337 companies with losses, being 
prartically 17 per cent. 

Statement coinpiled from a tabulation in the report of tlie Bituminous 
Coal Commission entitled : '* Table prepared from 1,551 returns of net in- 
come filed by bituminous coal-mining concerns for 1918, distributed accord- 
in? to tlie ratio of net income or net loss to invested capital, showing: the 
number of returns, the a??;;rejiate amount of capital stock, invested capital, 
net income, income tax. for profits and excess profits tax, total tax, and the 
net income after deducting tax, also for those returns reporting" loss, 
and net aggregate loss (also total tonnage for 1918, supplied by the 
Geological Survey)." 



CompanJM i Comiiiinies 
reporting reporting 

net income. loss. 



Total 



Nnmber of rom panics. 

Cai^tal-««tock 

In-osted capital 

Net inrome 



Income tax ; 

War profits and excess profits tax . 



Total tax 

Per cent of total tax to total income , 

Net Income after deducting tax 

Average per cent of net income to invested capital before 
dedu<^-ting tax , 

Average per cent of net income to in\03ted capital after 
deductmc tax 

Average per cent of net income to capital stock before deduct- 
ing tax 

Average p>er cent of net income to capital stock after deducting 
t^T 



T onnagc 

Net income per ton: 

fiefore deducting tax. 

.After dedu-ninc tax. . 



1.214 I 337 

$2.51,0f'.2,oo4 $20,932,839 

S443,.52n,546 $27,445,231 

$91,4.')4,207 iS2,t)19,732 



$6,233,108 
$30,812,269 



$43,045,437 

47.10 

$48,408,770 

20.62 

10.91 

36.44 

19.29 
16<J,893.351 

Crnls. 
:.4. 15 , 
28.66 I 



»9.55 



» 12.51 



11,009,536 
Cevtx. 
•23. SO 



i,5.=;i 

$271,935,393 
$470,9<-.o,777 
$88,S.'M,47.-) 



$6,233,168 
$;36.812.269 



$43,045,437 

48. 4ti 

$45,789,038 

18. 86 

9.72 

32.67 

16.84 

179,902,887 

Cents. 

49. .38 

25. 45 



Loss 



104 EEPOKTS OF BITUMINOUS COAL COMMISSIO:^'. ^ - 

Another feature which was entirely ignored in the tabulation con- 
tained in the majority report is the relation of the net income to the 
tonnage of coal produced. It surely must be conceded that a com- 
pany, no matter what amount of money it may have invested in coal 
lands or equipment, is not entitled to a return on this investment 
when its property is nonproductive. The true measure, therefore, 
of the rate of return to which a coal corporation is entitled would 
naturally be the amount of coal produced in a given year. This 
information is contained in the table, but as above stated was not 
used in the majority report in arriving at a conclusion as to the 
reasonableness of the profits made thereon. 

The inclusion of this information by the Treasury Department and 
the Geological Survey is gratifying to us. The profit per ton has 
been computed in the foregoing table and shows that these com- 
panies, the fortunate and the unfortunate, the large and the small, 
all combined, made a net profit^ after paying out 50 per cent of their 
income in taxes, of approximately 25^ cents on each ton of coal 
produced. When it is considered that this profit is after all deduc- 
tions for depletion^ to pay for the' coal land^ for depreciation^ to pay 
for the equipment^ for interest on hoji^owed money ^ which usually rep- 
resents the entire investment^ and for all other charges which can 
he croioded into an income tax return^ it would seem as though the 
profit realized ivas quite adequate. 

As figures similar to those for the prewar years are not obtain- 
able, it is not possible to make a comparison of this per ton profit, 
but in a general way it has been understood that in normal times 
a net profit of 10 cents a ton hj coal-mining companies was con- 
sidered a fair return. As is evident, these companies realized two 
and one-half times this amount. It is also evident that the group 
is composed almost entirely of comparatively small concerns, the 
average capitalization being practically $175,000, and from the com- 
pilation made by the mine workers of the earnings of the larger 
corporations it is clear that their profits are even a greater amount 
per ton. As a considerable proportion of the total tonnage of 
bituminous coal is mined by large concerns, the average rate of profit 
in the industry is apparently a great deal more than 25J cents per ton. 

In the light of all these facts, it is absurd for the operators to 
put forth the claim that if the mine workers are paid a living wage 
the public will suffer a forced advanced cost of coal and a further 
increase in the cost of living. While the mine workers, during our 
great national emergency, were working every day available in order 
to maintain production, were being paid wages even far below their 
prewar purchasing power, which, as has been pointed out, was below 
a level of actual subsistence, and at the same time were sending 
members of their families to France and straining their inadequate 



KEPOETS OF BlTUZSITXOrS COM. COMMISSION. 



105 



resources to the utmost in the jnirchase of Liberty bonds in or'der 
to aid our common cause, the coal-mining companies Averc helping 
to win the war by taking extortionate profits from the Government, 
our war industries, and domestic consumers, and were telling our 
harassed people, when they protested against the prices of coal, that 
I lie high prices were due to the exaction of high wages by the mine 
wt^ikers. Their action has cast a stigma upon the industry and 
uj)()n ilio patriotic honor of our peojde. 

INTRODUCTION OP LABOR-SAVING DEVICES AND MACHINERY. 

As a substitute for the extended section of the majority report on 
the topics we would recommend the following statement which more 



l)riefly and effectively covers the questions at issue : 



Lahor-savincr iiiacliinevy : The operators have the riglit to install hihor- 
savinET machinery at any time, and sueh machine work not now covered 
by this agreement shall be governed by such scale as the miners' and 
operators' representatives may determine. 

The United J^Iine AVorkers have always been favorable to and have 
never opposed the introduction of machinery or labor-saving ma- 
chinery in the operation of the mines. As a matter of fact, the sub- 
stitute of mechanical methods for hand labor has been a very notice- 
able feature of the development of the industry during the past 25 
years. The number of machines in use has increased from 545 in 
K^Ol to 18,463 in 1918. In the former year only 5.3 per cent of the 
bituminous coal supply was mined by machinery as contrasted with 
55,9 per cent, or more than one-half, in 1918. The growth in ma- 
chine mining is shown by the following table : 

Profhirtion of coal hy marhinn^ in the Vnitrd States since J 80 J, in shnit tons. 



Year. 


Number of 

machines 

in use. 


Per cent | 
of total 1 
production ' 
mined by 
machines. 


Year. 


Per cent 
Number of of total 
machines production 
in use. mined by 
, machines. 
1 


ISQI 


M3 
1,446 
1,9.56 
2.622 
3,12.5 
3,907 
4,341 
.'>,418 
6,6.58 
7,663 
9,184 
10,212 


.5.3 ' 
11.9 
15.4 

19.5 ^ 
22.7 j 
24.8' 
2.5.6 
26.7 1 

27.6 1 
28.2 j 
32.8 
34.6' 


1Q07 


11,144 i 34.9 
11,569 37 1 


i<'96 


190"^ !!!!!!!!!!!!!!!!! 


ivQT 


1009 


13,049 1 37.6 
13 254 41 7 


).^, 


1910 


' vQO 


1911 


131*^29 1 43 9 


;f:on 


1912 


15 298 ! 46 S 


' f 01 


1913 


16,381 50.8 
16.. 507 51 7 


io/t2 


1914 


I'.^W 


1915 


15,692 54.9 
16,198 .56.5 


i''i4 


1916 


;';0-) 


1917 


17 235 55 5 


' T, 


1918 


18, 463 .55. 9 









In its annual report on coal for 1914, the United States Geological 
Survey says: 

During the last quarter of a century the cause of unionism among the 
miners hasi shown noteworthy jtrogress and a number of coal-mining Slates 
are now all unionized. I'rices of labor have been markedly advanced, the 



106 EEPORTS OF BITUMINOUS COAL COMMISSION. 

higher cost of labor being chiefly offset by the economies effected through 
the use of mining machines and other mechanical and technical improve- 
ments. 

The great saving effected by the coal operators through the use 
of mining machines is manifest at a glance at the scale of wage rates. 
At present the rate for hand mining in both the Hocking Valley and 
the Pittsburgh districts is $0.8764 per ton (thin vein) while the rate 
for machine mining (chain machines, thin vein) is only $0.T0 per 
ton. At the rate of this differential of 17|^ cents per ton, the opera- 
tors made a gross saving through the use of mining machines amount- 
ing to $56,688,000, in the year 1918, and owing to the rapid growth 
of the use of machines, this profit is growing every year. In the 
year 1915, when the differential was larger than it now is, the saving 
through the use of machines was $48,000,000 and that the operators 
were keenly alive to their financial interests is shown by the fact 
that the number of mining machines has increased in the three years 
from 1915 to 1918 by over 17^ per cent. 

There are naturally some deductions that must be made from the 
above gross saving. There is the interest on the investment, and 
cost of the power required to operate, as well as repairs and deprecia- 
tion. The saving per machine, however, taking all makes and 
styles together can be readily found by multiplying the differential 
(17J cents) by the average tonnage mined per year per machine 
(17,500 tons in 1918). This product is over $3,000 as the average 
saving for each machine, and when this sum is compared with the 
average cost, it is seen that the investment is a very profitable one 
for the operators. 

The differential that now exists in Illinois between pick and ma- 
chine mining is 10 and 7 cents per ton, and in Indiana it is 12 cents 
per ton, both States having a considerably lower differential than in 
the Hocking Valley and the Pittsburgh districts, but even at this 
comparatively low differential the saving to the operators is large. 
The tables show that in the three years from 1915 to 1918 the number 
of machines in use in Illinois increased 20 per cent and in Indiana 
increased 37 per cent. 

The cost of mining machines varies with the style and the make, 
but they average between $2,200 and $3,200 apiece. If the interest 
on the investment is figured at 5 per cent, and the depreciation is 
large enough to replace the machine entire at the end of five years of 
use, the yearly overhead charge per machine will vary between $550 
and $800. The necessary repairs are more than counterbalanced by 
the junk or " turning in " value of the discarded machine, and the 
power for the operation is furnished from already existing power 
stations. Thus, a differential of 7 cents per ton with a yearly output 
of 17,500 tons per machine will effect a gross saving to the operators 



REPORTS OF BITUMINOUS COAL COiMMISSiON. 107 

of $1,225, which is a net saving above overhead chaigvs of from 
$075 to $425. A ditforential of four and one-half cents is sufiieient 
to justify the operators in installing machines and obtaining the 
benefits of the resulting increased production. 

The coal miner's position, however, is not that all the savings 
from the use of the machine should be credited to him. II is [>o^i- 
tion is admirabh' set forth by John Mitchell, formerly i)resi(lent of 
the United Mine Workers of America, in his book, " Organi/AMl 
Labor," chapter XXVIII. President Mitchell says: 

Trade-unionists know that they can not do \virht)ut further advanci^s in 
machinery, just as they realize that they could not maintain their pres(M\t 
status if all the machinery introduced in the past were to be suddenly 
withdrawn. 

What the trade-unionist ffa^ircs is not the prohibition of machinery, but 
its regulation. The unionist denmnds, first, that marhinertj be introduced 
in such a icai/ as to f/Zrc the greatest possible benefit to all classes, mith 
the least possible damape to the irorkman, and, second, that the intro- 
duction of machinery shall rebound to tJte direct and immediate advanfaye 
of the icorkman, as icell as to the direct and immediate adrantage of the 
employer. 

Whatever may be tlie ultimate effect of the introduction of machinery, 
the immediate effect has been to work extreme hardship on the emi)loy('e. 
The workmen who are obliged to work longer hours or more intensely 
for the same amount of pay, or who are thrown out of employment entirely, 
will not be consoled by the fact that in the long run prices will be reduced 
and the articles which they manufacture, cheapened to them. The union- 
ists believe that machinery should be introduced with the least possible 
friction and the least possible hardship to individuals. When the em- 
ployer is asked to increase wages or redu'-e hours, he frequently asks for 
an interval of a certain time in order to allow him to accfunmodate him- 
self to the change, and the labor unions are now beginning lo recognize 
the necessity of making great changes In industrial conditions by slow 
degrees. An equal duty should rest upon the employer to make alterations 
gradually, so as to extend the effect of the change over a series of years, 
and thus permit the workmen to accommodate themselves to the condi- 
tions. 

It is felt by the trade-unionists, moreover, that the workman should re- 
ceive some direct benefit from the introduction of new machines. Apart 
from the fact that machinery works damage indirectly by making work 
more irregular, apart also from the fact that the introduction of the ma- 
chine often means increased intensity of work and increased wear and tear 
upon the nervous system, apart from all other considerations, the workman 
should receive a portion of the benetit which is derived by the emi)loyer 
from the introduction of machinery. Originally tlie simple tool of the 
workman was his own property, and any improvement in this tool re- 
dounded to his own advantage. The machine was an extension and a com- 
bination of tools, and its introduction and improvement meant a gradual 
separation of the workman from the instruments of productioji. Tlie vital 
fact of machinery was this — that it was too effective to permit the work- 
man's tool to compete with it and too expensive for the individual workman 
to own it. As a result there grew up separate from the workman a cn]n- 
talist class, a cla.'^s owning machines and hiring labor. The result of this 
separation was that every imjjrovement in the machines was to the immefli- 
ate, if nf»t the ultimate, advantage of the employei* iind to the inunediate, 
if not the ultimate, detriment of the workman. The majority of trade- 
unioni.sts do not take the stand of the Socialists, that these machines 
should be taken away from the capitalist class and be owned by the whole 
body of workmen, but they do claim that whenever a machine is iniproved 
or a new macldne introduced, a part of the advantage should go to them 
innne<liately in increased watres oi- jle<i-ea.<ed hours. It is felt by the 
unionists that this is only fair and just, and that such a distribution of 



108 EEPORTS OF BITUMINOUS COAL COMMISSIOIT. 

benefits would compensate tlie workman for the increased intensity of his 
work and would be to the ultimate advantage of the employer and of 
society. 

* * * * * * * 

The inventor receives his reward through royalties or through a cash 
payment, society through the cheapening of the product; and the employer 
and employees should arrange among themselves for an eqiUtahle distribu- 
tion among them, the employer to he paid for his increased expense, for the 
cost of equipment, maintenance, and risk, and for his enterprise, ichile the 
ivorkingman should &e paid for his increased exertion and should he given 
a share of the bonus above that amount. The introduction of the machine 
should be done upon what may be likened to the cooperative system, and 
the machines should not be used to make the profits of the employer 
greater and the pittance of the employee less. 

As a matter of history, trade-unionism has not only not restricted the 
use of machinery, but has actually encouraged and stimulated its applica- 
tion. 

EespectfuUy submitted. 

John P. White, Commissioner, 
Washington, D. C, March 12^ 1920, 



ArrKMnx A. 

FTo tlio Minority Kop«^^i't.] 

TENTATIVE AWARD ORIGINALLY PREPARED FOR THE CONSID- 
ERATION OF THE COMMISSION. 

United States Brru:MiNOus Coal Co.ai mission, 

Washington, D. C, Fehruanj 2G, W.W. 
Mosrs. Hkniiy ^I. Ivoiunson and Ke:mbj{ani)T Peale, 

Coniniissioncrs. 

Gentlk:men: Pursuant to our iinderstaiulino- of last week, I here- 
with tranMuit an outline of the award on the labor section of the bi- 
tuminous coal controversy. 

A>ide from my intimate knowledge of the questions at issue, I 
took pains to follow closely the subject matter submitted to our com- 
mission. In addition to this I examined carefully the principal 
briefs submitted by each group of operators and miners, have 
weighed every phase of the situation, and I firml}^ believe that the 
proposals outlined herein are fully sustained by the records. 

The history of this case as presented to the commission seems to 
me to bear out the outstanding fact that the mine workers have been 
denied proper consideration in the matter of wages and working 
conditions during the war, when we take into consideration the high 
cost of living and the many substantial adjustments that were made 
in the wages, houi-s. and working conditions of men in many other 
lines of industry. 

The mine workers were keenly disappointed that they were driven 
back to work, in the manner and wa}^ so well known to each one of 
us, in the recent strike, and they must, in my judgment, receive sub- 
stantial consideration in the claims that they are making if our com- 
mission is to be instrumental in rendering an award that will stabil- 
ize the coal industry. 

That the mine workers have confidence in the judgment of the 
rommi->'i(jn I feel quite sure. The coal operators, on the other hand, 
can afford to meet these issues in a broad manner, because their 
profits have been large and substantial. 

The hazardous nature of the miner's calling is such that he can 
no longei' be denied a proper adjustment of those outstanding 
abuses so cliaracteristic of the past history of the industry. 

I have endeavored to make my contribution to the Avork of this 
commission helpful, because I quite understand the burdens the 
miner has to bear in his calling, and I can fully appreciate his feel- 
ings. Smarting under methods that were employed to force him 
back to work, the miner ha< not given up the idea that he was right 

109 



110 REPORTS OF BITUMINOUS COAL COMMISSION. 

in the course he was pursuing. And because of these conditions he 
is performing his work to-day some^^^hat in a state of subdued 
rebellion. He knows full well the many decided advantages his 
employer enjoys at his expense. 

My record in the labor movement is such as to leave no doubt of 
my desire to adjust matters through conciliation, and I am more 
than anxious that we reach a unanimous conclusion, because the 
President of the United States has so ably pointed out to us the 
necessity of doing so and because I know that if it is not done the 
niine workers' existing agreement will expire on April 1, 1920, in 
all the bituminous districts of the United States; that this is also 
true of the anthracite region, and hence the necessity of getting 
together in the broadest manner. 

I have drafted this outline, disregarding many fundamental claims 
that are made by the mine workers, and knowing full well that the 
coal operators can meet the obligations imposed in this award, ap- 
proximately, without serious inconvenience to themselves and with- 
out the public being seriously discommoded, and by so doing will 
demonstrate that they are willing to be generous and share some of 
the boundless prosperity they have enjoyed and will no doubt con- 
tinue to enjoy. 

Kespectfully submitted. 

United States Bituihinous Coal Commission. 
John P. White, Commissw>ner, 

EXPLANATORY. 

Central competitive field agrees to 11 cents as a correct flat rate 
of applying 14 per cent increase. 

Districts South of Ohio River. 

Average pick-mining rate Oct. 31, 1919 $0. 7165 

Flat rate based upon 14 per cent $0. 1003 

Production south of Ohio River, 1918 tons__ 157, 852, 274 

Districts West of Mississippi River. 

(Including ^lichigau and Maryland.) 

Average pick-mining rate Oct. 31. 1919 $1. 0450 

Total rate based upon 14 per ceut $0. 1463 

Production, 1918 tons__ 73, 025. 978 

Production in Central Pennsylvania and Adjacent Territory. 

Average pick-mining rate Oct. 31, 1919 $0. 87 

Flat rate based upon 14 per cent $0. 1218 

Production, 1918 tons__ 73, 817, 477 

Number of tons south of Ohio River at less than 11-cent rate 157, 852, 274 

Number of tons west of Mississippi River and central Pennsyl- 
vania on per cent basis 146, 843, 555 

When applied on a flat rate, pick mining for entire country brings more 
than 11 cents. 



REPORTS OF BITU:u:iNOUS COAL COMMISSION. Ill 

Why Pick-Mining Bask Should Appia'. 

It is the human base; all handwork. It has always been the 
method lused by operators and miners in the application of wae:e 
increases and i-eductions. 

Pick mining: includes mininor, drilling, shooting, and loading into 
the mine car. this being uniform in all mining fields. 

Why Machine Base Should Not Apply. 

Because of the many types of machines used and the varied rate 
for each type. 

Every new machine would bring constant changing of base rates 
and result in unending disturbance in the industry. 

Let the machine enter upon its merit to compete against the pick 
standard. The human element must alwaj's be protected. 

The $1.70 day wage increase and $1 for boys is an increase of 35 
per cent on the average wages of October 31, 1919. 

Tadie of Incuease Stxce 1913. 

Per cent. 
Averasre Increase in the central competitive field, all employees, to 

Oct. 31, 1919 48,83 

Increase cost of living to date 86 

Increase selling price of coal f. o. b. mines 120 

UNIFYING EXAMPLE. 
Entry Yardage. 




Increase. 



Rate Oct. 31. 1919: 

Mine A, $1 

Mine B, $1.2-5 

MineC.Jl.5n 

MineD,$l.75 

MmeE,$2 

Average equivalent per cent rate . 



$0.35 
.4375 
.522.5 
.6125 
.7000 
.5245 



Any sncli differentials may be made uniform when mutually 
agree to. 

The mining rates and wage schedules in effect on October 81, 1919, 
in what is known as the Washington agreement, applying to the 
central competiti^ e field and outlying districts except a.^ hereinafter 
provided, shall be subject to the following increases and conditions: 

1. That the mining prices for mining mine-run coal, pick and 
machine, .-hall l)e advanced 30 cents per ton. 

In the block coal field of Indiana, and in other localities that are 
still on the screened coal base, the usual methods of applying the ton- 
nage rates shall continue. This also has its application to districts 
that have a joint understanding in applying wage increases to low 
coal. 



112 EEPOKTS or bitumuntous coal COMMISSIOE". 

2. That all day labor and monthly men, except trappers and other 
boys, be advanced $1.70 per day. Trappers and boys receiving less 
than men's wages to be advanced $1 per day. 

3. That all yardage, dead work, and room turning be advanced 35 
per cent. Nothing shall prevent the representatives of the miners 
and operators in any district, in joint conference, from taking the 
fiat equivalent of the 35 per cent and applying it to yardage, dead 
work, and room turning, if by so doing they will make for uniform- 
ity and maintain the differentials. Failing, however, to agree to such 
application, then the 35 per cent shall be applied on the existing 
rates effective October 31, 1919. 

4. The differential existing in the western Pennsylvania district 
between the thick and thin veins, both pick and machine mining, 
shall be adjusted in the following manner : Commencing with April 
1, 1920, one-half of this differential shall be eliminated, and on April 
1, 1921, the remaining one-half shall be eliminated ; and the operators 
of the thick vein district will be required to pay the basic price pro- 
vided for in the thin vein mining scale. 

5. Payment for handling soapstone directly overlying the No. 8 
seam of eastern Ohio and the Pittsburgh district of Pennsylvania, 
shall be subject to the increase provided herein ; and that part of the 
stone up to and including the 12 inches is referred to the operators 
and miners of these two respective districts, and we recommend that 
two cents a ton be allowed, to be upon the ton, or it ma}^ be converted 
to a yardage basis if desired. 

The principle of determining the flat rates for the payment of 
yardage and dead work as set forth in section 3 may be applied in 
these two fields in fixing and establishing pay for handling soap- 
stone. 

6. The base rate in effect for inside da}^ labor in the central com- 
petitive field shall be established and made uniform throughout the 
central competitive field. 

7. The present daily working hours shall continue until April 1, 
1921. On and after that date employees will be required to work 
seven hours dail}^, six days a week, when required by the operator, 
in their usual working places. This shall be exclusive of the time 
required in reaching such working places in the morning and de- 
parting from them at night. And the conditions of the Columbus 
day wage scale of 1898 are hereby reaffirmed, except as to the number 
of hours constituting a da^^'s work. 

8. The machine differential in Indiana of 12 cents per ton to be 
adjusted in the following manner: Commencing with April 1, 
1921, it shall be 11 cents per ton, and on and after April 1, 1921, it 
shall be 10 cents per ton. Within the two-year period the total 



EEPORTS or BITUMINOUS COAL COMMISSION. 113 

machine rate to tlie niinei' v:i\\ W increased two cents as a result of 
the elimination of these diii'erentials as above ilescribed. 

Fouk-Cext Dirrr.KKNTiAT., Soitiikhn Illinois. 

The (lill'erential in ihe southern Illinois tiehl has been a controver-y 
of long standiniT, and the commission is of the opinion that there is 
no justifiable reason for its continuance, and therefore decided as 
foll(>ws: 

(dinmencing April 1. 19*20. the mining rate in southern Illinois 
^vill be increased two cent< per ton; on April 1, h>2l, it will again be 
increased two cents \kv ton, and by this process the four-cent ditler- 
cntial will be obtained. 

XOKTIIKRX IlLINOLS. 

A very ]HXuliar condition exists in the long-wall coal fields of 
ncirthern Illinois. This matter, like many other questions familiar 
to the operators' and miners' conventions, has proved a very vexeil 
problem, and the men who are employed in mining the coal in this 
tield are net able to earn a corresponding wage with the men eni- 
ployeil in the thicker veins in the other sections of the State. 

It is also true that the rate of increase per .ton, while equal to 
other fields within the State, has not yielded the miners of northern 
Illinois the same returns that have come to the miners in the thicker 
veins. It is therefore the oi)inion of this commission that miners 
and operators of this field, that there should be a joint commission 
of three operators and three miners appointed by the Illinois miners' 
and operators" associations, who will have full and complete author- 
ity to deal with all phases of the situation, including the adequacy 
of the increa:^e ordered in this award and as it may aft'ect these 

mines. 

Assu:NU'Ti(tx AXD Dr.cATrii. 

And. in view of the fact that it is alleged that at Assumption and 
Decatur, 111., conditions similar to those in northern Illinois exist, 
the same joint commission will have power to investigate and decide 
what may be necessary to determine matters at Assumption and 
Decatur. 

Mhiiioax. 

Conditions in the ^lichigan coal fields, as reflected by the briefs 
file 1 by the mine workers and operators, reveal the fact Uiat there 
are several questions in dispute submitted. 

(I) The question of whether or not the extra 10 cents per ton al- 
lowed by the United States Fuel Administration during the war 
should be continued, the miners contending for its continuation and 
the operators asking for its elimination. 
160222^—20 8 



114 EEPOBTS OE BITUMIKQUS GOAL COMMISSIOI^T. 

(2) The question of the number of rooms that should be given the 
loaders in the various machine mines is a very vital one, as the mmers 
put it. 

The commission believes in the matter of the 10 cents a ton given 
by the United States Fuel Administration that the decision of the 
Fuel Administration should govern. 

With respect to their contention that two places should be given t:y 
each loader, the contention seems to be well grounded and we recom- 
mend that the loaders be given that consideration* 

Iowa. 

From an examination of the briefs and arguments that were made 
by the representatives of the operators and miners of Iowa we find 
there were but a few questions submitted, some of which have been 
composed by the general terms of this award. The commission is 
therefore of the opinion that the remaining questions can be, and are 
hereby, referred back to the operators and miners joint conference 
in Iowa for adjustment. We believe that in takino^ this course the 
best interests of miners and operators within Iowa will be conserved. 

SOUTHWESTEEN INTERSTATE FlELD. 
(KANSAS, MISSOURI, ARKANSAS, OKLAHOMA, AND TEXAS.) 

By reference to the oral statements and extensive briefs filed in 
regard to matters touching the southwestern interstate districts, it 
will be seen that nearly all the subject matters submitted are purely 
local questions, and the commission believes that they should ]>e 
ventilated in the scale conferences in the Southwest, and we advise 
such course. 

We might say further that the situation in the Thurber field of 
Texas, like that in the Osage field of Kansas, is most extraordinary, 
and the conditions prevailing at these places are exceptional ; and if 
these mines are to continue operating it appears to the corn-mission 
that they can only operate when the markets are most favorable, 
as the physical conditions surrounding the mines in these fields are 
such that we believe the only way prices and conditions in these 
localities can be determined is by referring these matters back to 
the scale conference of the Southwest with that end in view. We 
recommend such course. 

WxoJkiiiN^G, Montana^ ais^d Colorado. 

An examination of the briefs filed by the operators and miners of 
these districts show no special or peculiar grievances not common 
to the industry as a whole. They do not appear to be complicated, 
and we would therefore advise that they be referred to the joint con- 
ferences of operators and miners in their respective districts for the 
purpose of having them mutually adjusted. 



kepoets of bituminous coal commission. 115 

Washington. 

The situation in the State of Washino^ton, as presented by briefs 
and oral statements of the operators and miners, reveals one of the 
most unusual and complex problems submitted to this commission 
for its determination. The operators show by their briefs' that in 
many of the commercial mines of the State, which produce the m;v 
jority of the State's tonnage and sales realization, the })rice is \k'- 
1('W the production cost. They also show that forei<2:n coal and fuel 
oil enter in a lariiv dearee into the future life of the coal industry 
in that State. 

The miners in rebuttal attack the fi^rures in the briefs of the 
operators, declaring that depreciation, dei)letion. and miscellaneous 
items of production cost are excessive and unwarranted. 

In view of the vital issues involved and the lack of time and 
iunds for this commission to make a survey and enable them to deal 
adequately with the problem, we recommend the following: 

That the representatives of the miners and operators of the State 
of AVashington. at the earliest possible moment, select one operator 
and one practical miner, the two selected to agree upon a disinter- 
ested mining engineer as the third member, and, failing to agree on 
such a person, the Secretary of Labor shall make the appointment. 
This local commission shall make a survey of all the mines in the 
State to develop the facts underlying the whole problem as it ap])lies 
to this industry in the State of Washington and at the earliest pos- 
sible moment submit its report to the joint conference of operators 
and miners of that State. 

AA'estkrn Kentucky, District Xo. 23. 

An examination of the 1)riefs filed with the commission from this 
di.-trict will show that the burden of complaint of the miners is that 
they have contended for many years that their rates of pay for cer- 
tain cla.sse.-5 of labor bear too great a difterential against the central 
competitive field and other districts. They cite that in the past the 
coal operators of western Kentuck}' claimed that when conditions 
would improve in what is known as the Hopkins County field th- 
matters complained of would receive their most earnest considera- 
tion. 

It i.> true that the operators claim they can not now change the.se 
long-establi>hed ditferentials because of market and freight condi- 
tions. Like many other cases submitted to the commission, and in 
order that no undue advantage will be taken of either operator or 
miner within these vai-ious districts, we find it neces.sarv, in weigh- 
ing the subject matters contained in the.se briefs, and where the con- 
ditions are extraordinary, to refer them to a joint conunission or 
joint conference. 



116 REPORTS OF BITUMINOUS COAL COMMISSION. 

It is therefore ordered that these matters be referred back to the 
joint conference of operators and miners of western Kentucky, and 
if they fail to agree the mines must continue at work and the un- 
settled matters disposed of by the United States Bituminous Coal 
Commission. It is expected in all these references that the operators 
and miners will reduce to a miniinum all matters that are likely to 
be controversial and that may lead to unstabilizing the coal industry. 

Alabama, Tennessee, Eastern Kentucky, and Maryland. 

The representatives of the miners from these States filed briefs 
citing the wages and conditions of employment, but as the records 
show, none of the operators from these districts appeared before 
the commission, merely filing letters with the commission to the 
effect that they have no joint relations with the mine Avorkers in their 
districts. 

In each of these districts during the Avar certain Avage increases 
Avere adopted and put into effect by the United States Fuel Adminis- 
tration, and tribunals Avere set up for the adjustment of the usual 
complaints common to mining. These tribunals included a perma- 
nent umpire in each district, and in order that justice may be done 
to all and the mine workers be given the right to enjoy the corre- 
sponding advantage that this aAvard may reflect as giA^en to mine 
workers elsewhere, the commission would recommend that the 
operators arrange to meet Avith representatives of the miners in 
these districts and to put into effect the aAvard of this commission, 
and to adjust the differences that may prevail in the industry in 
their respectiA^e localities, to the end that industrial peace and tran- 
quillity may prevail. 

AYest Virginia. 

The miners and operators having agreed in joint conference to the 
establishment of a joint commission (this Avas done two years or 
more ago), for the purpose of making investigation Avithin the 
Kanawha field, with the object of trying to correct inequalities and 
bring about a more uniform condition locally, haA^e not had oppor- 
tunity to present their report to their joint confe-rence because of 
the Federal Government exercising control over the coal industry. 
We feel, howcA^er, that Ave should recommend that they compose 
their internal matters in harmony Avith the report of the joint com- 
mission herein referred to, and Ave so decide. 

Central Pennsylaania. 

Evidence submitted and facts developed by the miners and opera- 
tors of this field in the presentation of their case clearly defines the 
issues involved, and the commission sets forth the foUoAving award 
in relation thereto : 



EEPOKTS OF BlTUMlXOrs CO.VL COMMISSIOX. 117 

Tlie ireneral award of the commission covcrinji basic principles 
determines and deals Avith some of the matters of vital import to 
this field. In decidinor upon local and internal questions affectini>: 
the district the commission reco<rnizes inecjualities that should be 
rectified in some degree. Therefore all additions to the base pay 
or otherwise by bonus during the Avar period shall be utilized in 
jniyment for dead work, or low coal .standard, or for any of the com- 
Iilaints set forth in the miners' demands. 

The variation of conditions throughout the district is of such 
character that in referring back to the next joint conference in this 
district, the commission hopes by this award and by cooperation and 
mutual agreement the bonus may be applied to remedy some of the 
evils complained of in the district. 

COMPLAINTS THAT ARE GENERAL IN CHARACTER. 

I. 

Car PrsiiiNG. 

This practice was complained of very bitterly in many of the briefs 
filed by the miners from nearly all sections of the bituminous coal 
fields. As shown by the briefs, the evils of this system are pro- 
nounced and impose a heavy burden upon the mine workers. With 
the growth of modern mining and the use of machinery the equip- 
ment has enlarged to a great degree, and, in our judgment, demands 
that a change take place in the method of handling mine cars. 

We recognize very forcibly that steps must be taken to change 
this system, Avhich should not be revolutionary, as it Avill require 
organization and in some instances careful consideration where physi- 
cal conditions of the veins are such that the financial outlay necessary 
to make roadway heights would possibly render it prohibitive. 

In order that the evil may be eliminated, Ave respectfully refer 
this important matter back to the various district joint conferences 
to be Avorked out in accordance with a mutual understanding, taking 
into consideration the conditions that obtain in each of the districts 
from Avhich tliese complaints emanate. 

II. 

PoAVOKK Ql'KSTIilX. 

The price of blasting poAvder furnished the miners shall not cx- 
crexl the price in effect on October 31, 1910. This commis.sion is of 
the opinion that there should be no attempt on the part of tlie 
employer to profit by the handling of poAvder sold to his emplo^'ec, 
and Ave recommend that the policy in the future shall be that powder 
bo furnished to the miners at cost pins transportation and insurance. 
AVhere detonating poAvders are used, the detoiiatcns shnll be fur- 
nished by the companies free of charge. 



118 EEPOKTS OE BITUMINOUS COAL COMMISSIOiN'. 

III. 

Blacksmiti-iing. 
We are of the opinion that the price charged the miners for smith- 
ing is excessive, and recommend that the charge be made on the 
basis of cost. 

IV. 

Price or House Coal to the Employees at the Mixes. 
The price in effect on October 31, 1919, for house coal furnished 
to the miners at the mines shall be increased by adding the labor 
cost only. 

V. 

Introduction of Labor-Saving Devices and Machinery. 

The commission finds that the United Mine Workers are in com- 
plete harmony with the introduction and use of machinery and 
other mechanical devices that tend to increase production and effi- 
ciency in the mining industry. An examination of the brief filed 
by the mine workers on this subject is ample x^roof of their position. 

Government statistics bearing on the subject of machine-mined 
coal, which is now 57 per cent of the total production, sustains the 
miners' contention that they have encouraged the introduction of 
machinery and mechanical devices that tend to intensify production. 

We find only a few isolated cases where it might appear that there 
was some opposition to the introduction of machinery, and we would 
recommend that wherever such instances are recorded that the good 
offices of the miners' international organization be exercised to main- 
tain the principle that they have so ably set up. and some equitable 
rule be jointly worked out that will conserve this principle. 

Yl. 

Contract Observance. 

Much was said by the coal operators in the hearings of the failure 
of the miners to observe contracts once they were entered into. The 
operators pleaded that the miners' international organization assume 
more responsibility for contract fulfillment. 

We would suggest, owing fo the fact that this question involves 
policies and long-standing customs, that it be taken up in the cen- 
tral competitive field joint conference, and whatever rule will be 
^Yorked out in this conference shall become the rule for a similar 
policy in the outlying districts. 

We can see no logical reason Avhy a greater responsibility should 
not be exercised by the miners' international organization over the 
subordinate branches. We believe, however, that the miners' inter- 
national organization should not be made the place where every 
petty grievance can be referred, but have in mind the larger principle 
involved in this question. 



N 



REPORTS OF BITUMINOUS COAL COMMISSION. 119 

VII. 

Discounting E^irLOYEEs"' Wages. 

It was cited by the miners duriiio- the hearings that a very serious 
evil exi>ts in the industry, throuah the practice of the coal operators 
advancino- nu^ney to employees durincj the interim of pay days and 
exacting discounts. This policy, in the opinion of the commission, 
is absolutely wrong, and we find no justification for its existence. 

The commission decides that the coal operator shall not accept ad- 
\ ance order> on the employees' wages, and, in the event the operator 
advance? money on account, it shall be without order or discount. 

VIII. 

Paving ^Iitsers by tiii: Caii. 

From an examination of the briefs filed with the commission, we 
fintl the practice of paying miners by the car measurement instead 
of the ton still exists. The evils of this system are outstanding and 
it is rei^lete with abuses; it can not be defended on any honest or 
legitimate gi'ounds. 

The conmiission therefore decides that the practice of paying by 

car measurement be abolished, that the coal be weighed, and that 

2,U00 pounds constitute a ton, the basis upon which all miners should 

be i)aid. 

IX. 

Maintaining Oten Mining Camps. 

If the mine worker and liis family are to enjoy the emoluments of 
advancing civilization, there must come an organic change in his en- 
vironment. While there has been marked progress made in the better 
mining centei*s of the country toward ameliorating the conditions of 
the miner and his family, yet, on the other hand, in the isolated 
mining camps where large groups of miners are employed this has 
not been done. AVeAvish tocommend those mining companies that have 
taken into consideration the social conditions and the advantages that 
have accrued by reason of establishing better lu mes and enabling the 
mine worker to acquire a home. 

There still exist some grave evils in that direction and some coal 
companies still maintain what is known as the '* closed canii),'' where 
they domin.*te the entire situation, and at the slightest opposition of 
the miners to conditirns that are offered the operator is in a position 
to evict them from their homes and impose upon them almost any 
condition he sees fit. 

If we expect cooperation and helpfulness to exist between the em- 
ployer and the employee, these evil conditions must give way to a 
more enlightened and humane attitude (U the part of the employers. 
AVe tlierefore earnestly recommend tliat wherever miners and opera- 
tors meet in joint conference they will u.-^e their influence for the pur- 



120 EEPORTS OF BITUMINOUS COAL COMMISSION. 

pose of bringing about substantial improvements that will eliminate 
these evils, and thus remove one of the great causes of unrest. 

Application of 14 Per Cent Wage Increases. 

We find great confusion prevailing throughout the various coal- 
producing districts, outside of the central competitive field, because 
of the manner and way in which the 14 per cent increase has been 
applied. 

The commission made known to the operators and miners through 
the hearings that Avhen making its final award we would determine 
how the 14 per cent would be applied. We find that it has always 
been customary to folloAv the rule of the central competitive field, 
Avhich was considered somewhat as the key to the whole situation 
and has served as a guide to the entire mining industry of the count^3^ 

The 14 per cent increase applied at the basino- points in the cen- 
tral competitive field amounts to 11 cents per ton and was added to 
the pick and machine mining rates, thus maintaining the differen- 
tials. The 14 per cent increase vs^as added to the j^ardage, dead work 
and room turning, day wage, and monthly men. 

Percentage increases always disturb established differentials. It 
is therefore our decision that 11 cents per ton be added to the pick 
and machine mining rates in effect October 31, 1919, and that yard- 
age, dead Avork, and the day wage and monthly men be advanced 14 
per cent in all bituminous districts ; that it be made retroactive from 
the date of resumption of mining and continue until March 31, 1920, 
as the award of the commission will become effective April 1, 1920, 
and Avill substitute and absorb the 14 per cent wage increase. 

XI. 

Joint Wage Negotiations. 

The commission's award becomes the base upon which all wage 
agreements shall be predicated. The specific awards set forth shall 
not be subject to negotiations, but shall apply automatically in such 
agreements or schedules of wages. 

Latitude to unify, or mutual arrangements that may be entered 
into, are hereby authorized and suggested, providing the specific 
awards and principles are adhered to. 

XII. 

Terms and Tenure of Contract. 

The terms and provisions of this award shall become effective 
April 1, 1920, and continue in effect until March 31, 1922. 

O 



I 



■^ 



